Iowa, Montana AGs Urge Supreme Court to Block ‘Politicized’ Antitrust Lawsuit Against Paramount-WBD Merger

Iowa Attorney General Brenna Bird and Montana Attorney General Austin Knudsen have filed a motion with the Supreme Court to block California Attorney General Rob Bonta and 11 other states’ “politicized” antitrust lawsuit against the pending $110 billion Paramount-Warner Bros. Discovery merger. In the 56-page filing, the pair argued that the 12 states have “effectively vetoed” a transaction that has been approved by regulators and government bodies representing 68 jurisdictions around the globe, which “burdens the national economy, harms Plaintiff States’ quasi-sovereign interests, and conflicts with the federal antitrust enforcement regime.” They warned the litigation is depriving the Iowa and Montana economies of the benefits of the deal and harming “tens of thousands of employees of Paramount and Warner Bros., as well as hundreds of millions who watch their movies, shows, and news through a variety of sources” in the process. “This case is about the legal limits on politicized antitrust enforcement by a small handful of states seeking to enjoin a $110 billion merger that the United States, most American states, and competition regulators worldwide have cleared,” the complaint continues. “Plaintiff States have the same interest that Defendant States have in well-functioning markets, but believe the merger will help their economies. Because they have the same interest, they should be able to litigate the issue, but can only do so here.” Bird and Knudsen said the Supreme Court is the only venue that can resolve a “controversy between sovereigns” and that it should “enjoin the Defendant States’ suit and decide the issue for itself, ensuring a prompt and fair adjudication of the merger.” “We are reviewing the filing and will respond as appropriate,” a spokesperson for the California AG’s office told TheWrap. It’s unclear whether the Supreme Court will ultimately take up Bird and Knudsen’s case. Assuming that Iowa and Montana could get oral arguments scheduled between Oct. 2026 and April 2027, a decision wouldn’t be made until late June or early July. The move comes as Bonta and the other 11 state AGs’ lawsuit against Paramount is headed to trial in March 2027. Paramount has agreed to delay the closing of the merger until five days after the outcome of the trial, or June 1, 2027, whichever comes earliest. The contractual expiration date on the merger is June 4, 2027. Starting Oct. 1, Paramount CEO David Ellison is on the hook to pay WBD shareholders a 25 cent per share ticking fee, which translates to a payout of $650 million per quarter or $7 million per day until the deal is closed. If the deal does not close at all due to regulatory matters, he must also pay WBD a $7 billion break-up fee. More to come…