New Mexico AG challenges Warner Bros., Paramount merger

(KVIA) -- Monday, New Mexico Attorney General Raúl Torrez -- along with a coalition of 12 attorneys general -- filed a lawsuit challenging a $110 billion acquisition of Warner Bros. by Paramount. The proposed merger would combine two of Hollywood's film distributors and two major basic cable companies.

Torrez said Paramount and Warner Bros. compete for film, television and to market basic cable channels. He said distributors and movie theaters rely on their competition to keep prices low for themselves and their subscribers.

He alleged the merger would end the competition and threaten viewers with higher prices.

The lawsuit, filed in the U.S. District for the Northern District of California, alleged the merger violates the Clayton Act, which said mergers that may lessen competition or tend to create a monopoly are illegal, according to the attorney general.

Attorney General Torrez said the merge would control nearly one-third of movies and nearly one-third of basic cable programming. He said the coalition asked Warner Bros. and Paramount to not close the merger until after the judicial process finishes.

If the companies don't agree, Torrez said the coalition will file a temporary restraining order.

The attorneys general alleged that if the merge happens, it would lessen competition in these areas, according to Torrez:

• Wide Release Theatrical Film Distribution, where Warner Bros. and Paramount are two of the five major film distributors and would combine for around 27% share of the market. After the merger, only three distributors will control 75% of these films, and only four distributors (Defendants, Disney, Universal and Sony) will control 86% of them. 
• Anticipated Top-Grossing Theatrical Film Distribution, a submarket of theatrical film distribution focused on anticipated blockbuster films with wide audiences and large production budgets. After the merger, Defendants will control more than 30% of these films, and four distributors (Defendants, Disney, Universal and Sony) will control more than 90% of them. 
• Licensing Basic Cable Television Channels, or the market for distributing basic cable channels to cable and satellite providers. Warner Bros. is the second largest and Paramount is the third largest in this market, and they would combine for a 27% share 

“While New Mexico is a very attractive location for filming due to our economically friendly film environment, this merger would create a near monopoly that could significantly threaten the stability of New Mexico’s film industry – including countless good jobs for working New Mexicans,” said Attorney General Raúl Torrez in a statement.

The attorney general also said film and TV industries spend more than $327 million in New Mexico's economy in fiscal year 2026, according to the New Mexico Film Office.

Attorneys general from California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New York, Oregon and Washington are among the coalition. Texas Attorney General Ken Paxton isn't.