Iowa and Montana ask Supreme Court to shut down California's antitrust challenge to Paramount-Warner Bros. merger

 August 27, 2026

Two Republican attorneys general filed a rare motion asking the U.S. Supreme Court to block California's lawsuit against the $110 billion Paramount-Warner Bros. Discovery merger, calling it a politicized power grab by a handful of states.

Iowa Attorney General Brenna Bird and Montana Attorney General Austin Knudsen went directly to the nation's highest court on Tuesday, filing what they called a "Bill of Complaint" that asks the justices to intervene in a dispute that has stalled one of the largest media deals in American history. Their target: California Attorney General Rob Bonta, a Democrat who, along with eleven other states, filed an antitrust lawsuit seeking to kill the merger entirely.

The Iowa-Montana filing frames the dispute not as a routine regulatory disagreement but as a constitutional confrontation between states. Thirty-eight states and the U.S. Department of Justice declined to challenge the deal. Competition regulators around the world cleared it. Yet twelve states, led by California, moved to block the transaction anyway, and Bird and Knudsen argue that only the Supreme Court has the authority to sort out a fight of that scale.

Bird and Knudsen say no other court can settle a fight between states

The legal mechanism matters. Congress gave the Supreme Court exclusive jurisdiction over disputes between two or more states. Bird and Knudsen invoked that authority directly, arguing that the California-led coalition has effectively overridden the judgment of the federal government and the vast majority of states. Breitbart News reported that the filing lays out the case in blunt terms.

From the motion itself:

"Twelve states have effectively vetoed a transaction that the other thirty-eight, and the United States, declined to challenge. No other forum can resolve that controversy. Congress made this Court's jurisdiction over controversies between two or more states exclusive.... This Court is not merely the best forum for this controversy. It is the only one."

That framing puts the Supreme Court in an unusual position. Original-jurisdiction cases between states are rare, and several unnamed experts cited by Variety assessed the filing as a long shot. But Bird and Knudsen appear to be betting that the sheer scope of the conflict, a $110 billion deal cleared by the DOJ and blocked by a minority coalition of state attorneys general, warrants the Court's attention.

The filing also makes the economic argument personal for residents of Iowa and Montana. The two attorneys general contend that Bonta's lawsuit harms tens of thousands of Paramount and Warner Bros. employees and hundreds of millions of viewers who consume their movies, shows, and news programming. The Supreme Court has long been the venue where states settle disputes that no lower court can properly adjudicate, and the Iowa-Montana team is pressing that principle hard, even as other major cases crowd the Court's docket.

Bonta refused a meeting with Paramount, then set conditions

The filing did not arrive in a vacuum. California's handling of the dispute has drawn criticism from multiple directions, including from within the state's own political establishment.

Bonta refused to take a meeting with Paramount representatives. He later indicated he would be willing to sit down if what he described as "purported leaks" about the negotiations were stopped. The filing does not elaborate on which leaks Bonta was referencing, and the specifics remain unclear.

Governor Gavin Newsom, a fellow Democrat, urged Bonta to settle the lawsuit. Newsom's intervention is notable because it suggests the state's own leadership recognizes the risk the lawsuit poses to California's entertainment industry, the very sector the state depends on for jobs, tax revenue, and cultural influence. The broader pattern of federal courts and state officials clashing over executive authority has become a recurring feature of American governance, as seen in recent rulings out of California's own federal courts.

Even Hollywood's own labor unions broke with Bonta. Early this month, the Directors Guild of America and IATSE, the union representing stagehands, technicians, and other behind-the-scenes workers, published an open letter urging the California attorney general to settle.

Their language was measured but pointed:

"While we have been consistent in our view that mergers, such as this one, historically offer few benefits to workers, we are also particularly concerned about the negative impact a delay in the decision regarding the proposed merger will have on our members and the industry at large."

When two of the entertainment industry's most powerful unions, organizations that exist to protect workers from corporate overreach, publicly ask a Democratic attorney general to stand down, the political dynamics of the case shift. These are not conservative activists or corporate lobbyists. They are the people who build sets, operate cameras, and direct films for a living. And they concluded that Bonta's lawsuit threatens their livelihoods more than the merger does.

Thirty-eight states cleared the deal, twelve want to override them

The core tension in the Iowa-Montana filing is arithmetic. The DOJ approved the merger. Thirty-eight state attorneys general declined to challenge it. Competition regulators in other countries cleared it. But twelve states, California and eleven unnamed co-plaintiffs, filed suit to block it.

Bird and Knudsen described the situation in their filing as "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." That language is not accidental. It frames Bonta's coalition as outliers who are substituting their own policy preferences for the judgment of the federal government and the overwhelming majority of their peers.

The filing also argues that Iowa and Montana have a direct stake in the outcome. Their residents work for Paramount and Warner Bros. Their economies benefit from the deal going through. And their own attorneys general already reviewed the merger and chose not to oppose it. The Supreme Court's role in disputes between states has drawn renewed attention in recent years, as the Court increasingly becomes the venue where major federalism questions are resolved.

From the motion:

"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."

The word "here" carries the weight of the entire argument. If the Supreme Court is the only forum where one group of states can challenge another group's attempt to block a federally approved transaction, then declining to hear the case would leave Iowa and Montana with no remedy at all. That is the leverage Bird and Knudsen are pressing.

Experts call it a long shot, but the precedent question is real

Several experts assessed the Supreme Court filing as unlikely to succeed, citing jurisdictional questions. The Court takes original-jurisdiction cases between states sparingly, and the justices have wide discretion over whether to accept such filings. The procedural hurdles are steep.

But the underlying question, whether a minority of states can use antitrust law to override a federal determination and the consensus of the majority, does not go away if the Court declines this particular motion. The filing by Iowa and Montana puts a marker down. It forces a public accounting of who cleared the deal, who blocked it, and on what basis.

The eleven states that joined Bonta's lawsuit remain unnamed in the filing's public descriptions. Their specific antitrust objections have not been detailed in the available record. What Bonta's lawsuit actually alleges, beyond a general challenge to the merger, remains unclear. That opacity is itself a problem. When twelve state attorneys general move to block a $110 billion transaction that the federal government approved, the public deserves to know the specific legal theory, not just the political posture. Courts at every level have become battlegrounds for policy disputes that elected officials cannot or will not resolve through legislation, a pattern visible in recent federal appeals court rulings across the country.

Bonta's refusal to meet with Paramount, followed by conditional willingness tied to stopping unspecified leaks, does not project confidence in the merits of his case. It projects a negotiating posture designed to extract concessions rather than litigate substance. Newsom's public pressure to settle reinforces that reading. If the governor of the state leading the lawsuit thinks the case should be dropped, that tells you something about the strength of the legal position.

Workers and taxpayers bear the cost of delay

While attorneys general maneuver and experts debate jurisdiction, real people wait. Tens of thousands of Paramount and Warner Bros. employees face uncertainty about their jobs, their benefits, and the future of the companies they work for. Hundreds of millions of viewers who depend on these companies for news and entertainment have no say in the legal fight that will determine what content survives and what gets cut.

The DGA and IATSE open letter made the cost of delay explicit. These unions did not endorse the merger on its merits. They said plainly that mergers like this one "historically offer few benefits to workers." But they concluded that the damage from prolonged legal uncertainty was worse than the deal itself. That is a grim calculation, and it falls hardest on the workers who have the least power in the equation.

Iowa and Montana filed their motion because their residents are caught in the crossfire of a legal fight they did not start and cannot escape. The DOJ approved the deal. Their own attorneys general approved it. And yet a coalition led by one state's attorney general, operating without the support of the federal government or the majority of his peers, has the power to hold the entire transaction hostage. The question of how far a small group of state officials can go to override federal regulatory decisions is one the courts will have to answer, much as federal judges have weighed in on the limits of executive authority in other high-profile disputes.

Whether the Supreme Court takes this case or not, the filing exposes a structural problem in American antitrust enforcement. When a dozen states can veto what the federal government and thirty-eight other states approved, the system is not protecting competition. It is rewarding the most aggressive litigator in the room, regardless of whether the law, the evidence, or the public interest supports the fight.


About Tim Harrison

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