ECONOMY
New Mexico’s attorney general joins suit to block Paramount’s takeover of Warner Bros.
Raúl Torrez says $110 billion acquisition ‘could significantly threaten’ the local film industry
New Mexico Attorney General Raúl Torrez joined a lawsuit Monday challenging Paramount Skydance Corp.’s $110 billion plan to purchase Warner Bros., arguing the resulting media giant would cause “substantial harm” to New Mexico’s film industry.
California Attorney General Rob Bonta is leading a 12-state coalition of attorneys general, who say the merger of two of Hollywood’s five remaining legacy studios would permit higher prices and reduce overall film output for an already challenged industry.
The deal would bring Warner Bros. hits “Harry Potter,” “Dune” and “The Lord of the Rings” into Paramount’s already impressive film suite, which includes “Top Gun,” “Mission: Impossible,” and “The Godfather.”
Attorneys general from Colorado, Arizona, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New York, Washington, and Oregon have also joined the suit, which was filed on Monday in U.S. District Court in Oakland, California.
While New Mexico’s film business has picked up recently after years of decline, Torrez said the Land of Enchantment would suffer from the deal, which the U.S. Department of Justice approved in June after concluding it would not harm consumers.
“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,” Torrez said in a statement.
The states argue that Paramount’s proposal violates Section 7 of the Clayton Act, which prohibits transactions whose effect is to “substantially lessen competition, or to tend to create a monopoly.”
The 12-state coalition has asked Paramount and Warner Bros. to put the deal on hold while the litigation is pending, but Paramount says that would be costly — at around $650 million in “ticking consideration” it plans to pay Warner shareholders every 90 days while the merger is paused.
If they merge, Paramount and Warner Bros. together would control roughly 27% of the overall market, with three other distributors — Disney, Universal and Sony — remaining.
“This proposed $110 billion merger, the largest in Hollywood history, would extinguish competition between Paramount and Warner Bros. and inflict substantial harm on movie theatres, basic cable distributors, and, ultimately, audiences nationwide,” Monday’s court filing reads.
Warner Bros.’ previous bidder, Netflix, proposed to buy the studio last year for $72 billion in equity value, but the deal ultimately fell through amid Paramount’s hostile alternative offer: $30 per share in cash to Warner Bros. shareholders.
Bill Banowsky, owner of Sky Cinemas in Santa Fe and founder of Magnolia Pictures, said he preferred a deal with Netflix, which has invested millions in film production facilities in New Mexico.
“I would have much rather have had Netflix step up and acquire Warner Bros,” he said, adding that similar media mergers, like Disney’s acquisition of 21st Century Fox in 2019, led to fewer overall film productions. “I think that, notwithstanding any rhetoric that may come out of Paramount to the contrary, we will most definitely see a fewer number of quality theatrical films.”
The film and TV industries spent a combined $327 million on New Mexico’s economy through 80 productions in fiscal year 2026 that ended in June, according to the New Mexico Film Office.
Film Office Director Steve Graham, a former film producer, struck a neutral tone when asked about the possible consequences of a Paramount-Warner Bros. merger on Monday.
“The New Mexico Film Office does not have a role in the litigation,” he said in a statement. “While we cannot comment on the lawsuit, both Paramount and Warner Bros. Discovery have brought productions to New Mexico that supported jobs, local talent, vendors and businesses.”
Terry Sanchez, a member of New Mexico film union IATSE Local 480, has worked as a key grip camera operator on over 100 film productions since he started in the business at 19 years old.
He worries that major media mergers will reduce incentives to pay fair wages to film workers and make it harder for New Mexico to draw from a smaller overall pool of productions. He’s an advocate for federal film incentives in the U.S. that could bolster tax breaks states like New Mexico already offer.
“It saddens me,” said Sanchez, who worked on the New Mexico-based Sony Pictures Television show, “Pluribus." “I’ve worked overseas a fair bit teaching the best that other countries have to offer, and it’s hard to see that work going somewhere else.”
John Miller is the Journal’s northern New Mexico correspondent. He can be reached at jmiller@abqjournal.com.