CALIFORNIA — The U.S. Department of Justice approved a $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance. Investigations by the California and New York attorneys general are underway. Thousands of entertainment industry professionals oppose the merger.

California Attorney General Rob Bonta said, "The merger of Warner Bros and Paramount is not a done deal and remains under investigation by my office." The New York Attorney General's office is investigating the proposed merger. Paramount announced it intends to finalize the merger as soon as possible.

Scott Wagner, co-head of antitrust practice at Bilzin Sumberg, said, "State attorneys general have independent authority to challenge mergers even when federal regulators decline to do so." He said, "The most direct tool available to California and New York is an antitrust lawsuit seeking an injunction to block the transaction." Spokespeople for Bonta and New York Attorney General Letitia James declined to comment on potential legal challenges.

More than 5,500 actors, directors, producers, and screenwriters signed an open letter opposing the merger. The signatories include JJ Abrams, Bryan Cranston, Jane Fonda, Pedro Pascal, and Ben Stiller. Craig Aaron, co-CEO of Free Press, said, "They are warning us what will happen if this deal goes through, and we must listen."

The U.S. Department of Justice antitrust division said, "The transaction is not likely to result in harm to competition or American consumers." Paramount said in a statement, "This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment."

Paramount has retained attorney Jeffrey Kessler in anticipation of legal challenges from state attorneys general. Kessler said, "It’s a very necessary merger to enable increased competition in streaming services, protect the model in network television and increase the number of movies in theaters." David Ellison, 43, the son of Oracle co-founder Larry Ellison, has promised to release 30 movies annually in theaters.