Add as a preferred source on Google TKO Group Holdings CEO and Executive Chair Ari Emanuel sharply criticized the lawsuit seeking to block Paramount Skydance’s acquisition of Warner Bros. Discovery.
In an op-ed published by The Wall Street Journal, Emanuel argued that the lawsuit led by California Attorney General Rob Bonta threatens the very competition it claims to protect.
“The lawsuit by California’s Rob Bonta and 11 other state attorneys general to block the acquisition of Warner Bros. Discovery by Paramount Skydance puts it all at risk. They say they are protecting competition. Their actions threaten to destroy it.”
The deal, announced on February 27, 2026, values Warner Bros. Discovery at $31 per share. Its equity value is $81 billion, while the transaction carries an enterprise value of $110 billion.
The lawsuit was filed by 12 state attorneys general. It alleges that the merger would reduce competition in film distribution, blockbuster film releases and the licensing of pay-TV channels.
A federal judge temporarily blocked the deal from closing, and the companies later agreed to keep the transaction on hold until the lawsuits are resolved or June 1, 2027. The delay could cost about $650 million per quarter beginning September 30, 2026.
Emanuel also criticized the states’ definition of the market:
“You know an antitrust case is trash when it ignores some of the fastest-growing competitors in the market. In their analysis, the state attorneys general pretend Amazon MGM, A24 and Lionsgate don’t exist and that Netflix isn’t leaning into theatrical films with its coming release of Greta Gerwig’s ‘Narnia: The Magician’s Nephew,’ which I suspect will whet its appetite for more.”
“The real threat to competition is what happens if the attorneys general succeed. Warner Bros. Discovery ended 2025 with $29 billion in net debt and declining revenue. Does anyone believe it will be able to invest in films and television? More to the point, does anyone believe it wouldn’t sell its key assets to companies that aren’t committed to theatrical exhibition?”
Emanuel also addressed the companies’ ability to compete independently:
“Paramount can likely remain a competitor on its own thanks to David Ellison’s passion for filmmaking. But it will be a smaller company, without the ability to scale Paramount+, which means it can’t spread the cost of content across a larger audience and commission the additional films and series that a global platform requires.”
Emanuel closed by arguing that the antitrust debate should be separated from the political fight over CNN:
“Let me conclude with some blunt talk. I am a lifelong Democrat, as are many of my friends and, yes, family. I hear the passionate concerns about CNN and the politics surrounding this transaction. But antitrust law can’t be a tool for settling arguments, whether wielded by a Democrat or Republican. Those issues should be debated directly and on their own merits.”
“When government officials manipulate markets to reach political outcomes, antitrust stops protecting competition and starts threatening it. The attorneys general should drop this case and get back to enforcing the laws as they are written. Let Hollywood creatives get back to trying to rip each other’s heads off at the box office, in streaming, online and everywhere else we compete. It’s what we’re best at.”
Emanuel’s relationship with Paramount also provides important context. In August 2025, TKO signed a seven-year, $7.7 billion agreement with Paramount for UFC media rights in the United States, with all events streaming on Paramount+ beginning in 2026.