HBO Max-Paramount+ Bundle Targeted by Subscribers in Lawsuit Challenging Megamerger

Logo text Consumers have refiled a lawsuit challenging Paramount’s $110 billion megadeal for Warner Bros. Discovery, alleging the merger has consolidated too much power in Hollywood. Recent moves by Skydance highlighted in the complaint: a bundle of HBO Max and Paramount+ slated for early 2027, the ouster of James Gunn and Peter Safran as the heads of DC Studios and plans to achieve at least $6 billion in annual savings through consolidated operations. The filing seeks a court order unwinding the acquisition. Skydance’s streaming services “may retain distinct names and interfaces, but both now answer to one owner and its combined financial interests,” states the lawsuit filed on Thursday in California federal court. The looming bundle is top of mind for investors and consumers and a precursor to an inevitable combination of the services in the future. “Long-term, the plan is basically to bring them together,” Skydance CEO David Ellison said last month after the merger closed. Before the deal, the lawsuit alleges that a subscriber dissatisfied with Paramount+ or HBO Max could switch between platforms. It claims that Skydance’s plans to move toward a unified streamer threatens consumers with higher aggregate subscription costs and diminished programming options. Skydance has “less reason to have each service undercut the other on price or programming value, even while competition from Netflix and other remaining services continues,” the lawsuit states. “The consumer may still choose between two brands, but no longer has the choice between those two independent sellers.” The lawsuit alleges the deal reduces competition in streaming, national TV news and first run theatrical production. By owning Paramount and Warner Bros. Discovery, Skydance can coordinate schedules and prioritize its aggregate slate in ways that eliminate previously independent release decisions, according to the complaint. The case has already been dismissed twice by the court. Thursday’s refiling is believed to be the last chance for the plaintiffs to amend their complaint. The lawsuit follows Skydance, which didn’t respond to a request for comment, earlier this week sketching out plans for billions of dollars in cost savings, which will come through layoffs, consolidating real estate and relying more heavily on AI, among other things. It also said that it sees an opportunity for savings in content, though it reiterated that it still expects to spend $30 billion on content annually. “With the reach of our combined platforms across streaming, broadcast and cable, each title can work harder for us, and as one company we can make smarter choices about how we distribute and monetize our slate,” wrote Ellison and co-CEO Ynon Kreiz.