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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Paramount did not sue Warner Bros. Discovery. On July 13, 2026, California Attorney General Rob Bonta led 12 state attorneys general in a lawsuit challenging Paramount Skydance’s proposed acquisition of WBD. Netflix was an earlier bidder, but it withdrew after Paramount made a competing offer. The Associated Press reported that Paramount’s $81 billion acquisition closed on October 6, 2026; the sources available as of October 8 do not explain the final disposition of the states’ claims before closing.
Who filed the lawsuit, and what was it trying to stop?
The plaintiffs were a coalition of 12 state attorneys general led by California, not Paramount. In its July 13, 2026 announcement, California Attorney General Rob Bonta said the states were challenging the proposed Warner Bros. and Paramount merger and asking a court to block it. The lawsuit targeted Paramount Skydance’s proposed acquisition of Warner Bros. Discovery (WBD).
The states alleged that combining the companies would give the merged business greater leverage over movie theaters and cable distributors, with risks including higher prices, fewer film releases, or less investment. Those are plaintiffs’ allegations, not findings that a court established. New York’s description of the case identified alleged markets that included films released widely to more than 600 theaters, anticipated top-grossing films, and basic cable television.
How did Netflix fit into the transaction?
Netflix was an earlier proposed buyer of WBD. The U.S. Department of Justice says Netflix entered an agreement to acquire WBD in December 2025; Paramount later submitted a competing cash offer. The Associated Press reported that Netflix withdrew after Paramount raised its offer to $31 per share for all of Warner. That bid history explains the “Netflix merger” wording, but the deal that closed was Paramount’s acquisition, not a Netflix acquisition.
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Why did the states challenge the deal?
The states’ case focused on competition in theatrical film distribution and basic cable. Their theory was that combining major film distributors and cable-channel owners could strengthen the company’s bargaining position with theaters and cable distributors and harm competitors and consumers. The states asked for relief under federal antitrust law; their predicted effects remain allegations unless established through the legal process.
How did regulators and the states differ?
Federal review, state litigation, and UK review were separate processes. The U.S. Department of Justice concluded that its eight-month investigation did not find the transaction likely to harm competition or American consumers in the areas it examined. That agency conclusion did not itself decide the states’ lawsuit. Separately, the UK Competition and Markets Authority cleared the anticipated acquisition on August 6, 2026, and recorded its inquiry as closed on August 17.
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| Review or case | Scope or position | What it did—and did not—decide |
|---|---|---|
| State lawsuit, led by California | Alleged harm in film distribution and basic cable, including potential effects on theaters, distributors, and audiences. | Sought to block the deal; the allegations are not judicial findings. |
| U.S. Department of Justice review | After an eight-month investigation, said the transaction was not likely to harm competition or American consumers in streaming video on demand, linear television, or theatrical film development, production, or distribution. | Stated the federal agency’s review conclusion; it did not adjudicate the states’ case. |
| UK Competition and Markets Authority | Cleared the anticipated acquisition on August 6, 2026; the inquiry page records closure on August 17. | Made a UK regulatory decision, not a ruling on the U.S. state claims. |
Did Paramount’s acquisition close?
Yes. The Associated Press reported on October 6, 2026, that Paramount’s $81 billion acquisition of WBD had closed, with the combined company known as Skydance. The legal path to that closing is not fully clear from the cited public accounts: California’s July 24 update said the companies had agreed not to merge until five days after a decision on the merits of the states’ challenge or June 1, 2027, whichever came first, and said a ruling for the states would block the merger pending appeal. On September 8, Paramount Skydance said it had obtained regulatory clearances in 69 jurisdictions and satisfied closing conditions, while describing the state and Writers Guild of America lawsuits as remaining barriers at that time. The later AP report confirms the close but does not explain the intervening disposition of those cases. The reviewed accounts therefore do not establish that a court ruled on the states’ allegations before the acquisition closed.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What does the deal mean for streaming viewers?
In an October 7 report, the Associated Press described plans to combine streaming products as future plans, not a completed change to what subscribers receive. The unified service’s name and consumer cost remained unknown in that report. Paramount executive David Ellison said, “Our viewpoint is, HBO should stay HBO”; that expresses his view, not a binding commitment about the eventual service or its branding.
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