A multistate antitrust challenge to block Paramount’s $110 billion merger with Warner Bros. Discovery could be filed as soon as next week, led by California Attorney General Rob Bonta, who is assessing whether the deal would harm competition.

The investigation, headed by Bonta, involves California, New York, and other states examining whether Paramount Skydance would substantially lessen competition in film and media.

State attorneys general argue the Paramount–Warner Bros. Discovery deal could lessen competition in the entertainment sector, potentially impacting consumers and industry dynamics.

The timeline and outcomes remain uncertain, with most legal maneuvering happening behind the scenes and court actions possible to influence the merger schedule.

Regulatory scrutiny is also international, with signs that the United Kingdom could intervene in the deal.

Paramount contends regulators worldwide have cleared the deal, arguing it would boost competition, consumer choice, content investment, and opportunities for creators while countering dominant platforms.

A court could pause the merger or require assets to be held separately if challenged, potentially delaying about $6 billion in planned cost cuts and the closing timeline.

Oregon's AG requested a 60-day delay to review documents, and Paramount has indicated the deal is not expected to close before late July.

Analysts note Paramount’s regulatory path has benefited from political connections and softer federal oversight, even as state-level scrutiny tightens for large mergers.

Paramount agreed to pay a ticking fee of 25 cents per share (roughly $650 million per quarter) to Warner Bros. Discovery if the deal fails to close by a specified deadline, reflecting incentives and potential costs of delay.

If delays occur, Paramount could incur substantial ticking fees and carry an estimated post-merger debt load around $80 billion.

A court-ordered delay or other legal actions could introduce significant headwinds, increasing the risk of a blocked deal.