A dozen US states have joined together to block the $110bn (£85bn) merger between Warner Bros. and Paramount, claiming the largest media consolidation in Hollywood history would stifle competition and raise consumer prices.

A group of states, led by California, have filed a lawsuit to halt the deal.

California Attorney General Rob Bonta claimed the merger would end up harming “audiences on every sofa and movie theater seat in the US”.

If it goes ahead, the new company would account for over a quarter of major film releases. Together with Disney, Universal, and Sony, just four conglomerates would control 86% percent of that market.

Combining Paramount and Warner Bros would end a century of fierce rivalry between two of Hollywood’s biggest hitmakers.

Between them, they own legendary franchises like Harry Potter, Batman, Mission: Impossible, and Top Gun, alongside TV giants like CNN, MTV, and Nickelodeon.

The regulatory challenge marks a significant hurdle for the entertainment giants as they attempt to merge operations.

In June, the US Department of Justice had approved the merger.

But the coalition of attorney generals has requested that the companies halt the transaction pending judicial review, threatening a temporary restraining order if they do not comply.

If approved, the combined titan would control nearly a third of the US theatrical motion picture market and basic cable programming.

Bonta claimed it “would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the US”.

The legal challenge focuses on three main areas: major cinema releases, massive blockbusters, and cable TV channels.

The states argue that losing this competition strips movie theaters and television networks of vital bargaining power. At present, if one studio demands unfair prices, a distributor can walk away and deal with the rival.

Without that option, the lawsuit argues that theaters and TV networks will face higher fees – costs that will eventually hit consumers through pricier tickets, high cable bills, and fewer choices.

“Nothing justifies these substantial harms to competition,” the lawsuit states.

However, supporters of the deal point out that the traditional media world is in crisis.

Cable TV audiences are shrinking rapidly, and cinema attendance faces intense, ongoing pressure from tech giants and streaming platforms, making scale an economic necessity.

In a statement, Paramount described the lawsuit as “fundamentally flawed” and “wrong,” adding that it would “vigorously defend the transaction”.

It added: “Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs.”

The BBC has contacted Warner Bros for comment.

NEW YORK — The cost of generating electricity from natural gas-fired plants in the United States has reached its highest level in at least 17 years, according to analysis from Lazard, and is expected to climb further amid surging power demand from data centers and artificial intelligence infrastructure.

Lazard’s latest Levelized Cost of Energy report highlights how rising fuel prices, construction costs and operational expenses have pushed natural gas power costs upward. The findings come as the U.S. grapples with unprecedented electricity needs from technology companies building massive data centers to support AI training and cloud computing.

Natural gas remains the dominant source of electricity generation in the U.S., accounting for a significant share of the power mix. However, the economics of gas-fired plants have deteriorated in recent years as renewable energy costs have fallen and fuel price volatility has increased. Despite these challenges, gas plants continue to provide essential dispatchable power, particularly during periods of peak demand or when renewable output is low.

The report underscores a broader trend in the energy transition. While solar and wind have achieved record-low costs in many regions, the intermittency of renewables requires backup from flexible sources like natural gas. This dynamic has kept gas plants relevant even as their levelized costs rise.

Data center demand is a primary driver of the projected increases. Technology giants are investing billions in new facilities across the country, many in regions reliant on natural gas for reliable baseload power. The AI boom has accelerated these builds, with hyperscalers seeking constant, high-volume electricity to power servers and cooling systems.

Analysts estimate that data centers could double or triple power consumption in certain markets over the next decade. This surge strains existing infrastructure and boosts the value of gas-fired generation, which can ramp up quickly to meet fluctuating loads.

Lazard’s analysis incorporates multiple factors, including capital costs, fuel expenses, operations and maintenance, and financing assumptions. The firm’s levelized cost metric provides a standardized way to compare different generation technologies over their lifetimes.

The 17-year high for gas power costs reflects a combination of inflationary pressures on construction and higher expected fuel prices. Natural gas prices have been volatile, influenced by domestic production trends, liquefied natural gas exports and global supply dynamics.

Renewable energy sources, particularly solar and onshore wind, continue to offer lower levelized costs in many scenarios. Battery storage costs are also declining, improving the economics of intermittent renewables. However, the full system costs of integrating high levels of renewables, including transmission upgrades and backup capacity, complicate direct comparisons.

Natural gas plants benefit from existing infrastructure and the ability to provide firm capacity. Many utilities and grid operators rely on them to ensure reliability, especially in regions with growing peak demand from electrification of vehicles, buildings and industry.

The Lazard report arrives as policymakers debate the future of the U.S. energy mix. The Inflation Reduction Act has accelerated renewable deployment through tax credits, but recent proposals in Congress could alter incentives. Uncertainty around federal policy adds complexity for developers of both gas and renewable projects.

Regional variations play a significant role. In areas with abundant renewable resources and supportive policies, solar and wind often undercut gas on cost. In other markets, particularly those with constrained transmission or high reliability needs, gas retains an edge.

Data center operators are increasingly signing power purchase agreements with various generators. Some are pairing renewables with storage and gas backup to achieve both cost efficiency and reliability. This hybrid approach reflects the practical challenges of meeting 24/7 demand with variable sources.

The power sector faces a capacity crunch in coming years. Retirements of older coal and nuclear plants, combined with rising demand, require significant new buildout. Natural gas is often the fastest option to bring online, though environmental regulations and permitting delays can extend timelines.

Environmental groups have criticized reliance on gas, citing methane emissions and long-term climate impacts. Advocates for gas argue that modern combined-cycle plants are far cleaner than older facilities and serve as a bridge to a lower-carbon future.

Utilities are navigating these tensions by pursuing diverse portfolios. Many are adding solar, wind and storage while maintaining or expanding gas capacity for reliability. The Lazard analysis helps inform these decisions by quantifying costs across technologies.

For investors, the report highlights opportunities and risks. Gas plant developers may benefit from near-term demand but face potential stranded asset risks if decarbonization accelerates. Renewable developers continue to see favorable economics, though integration costs and policy shifts introduce uncertainty.

The data center boom is reshaping power markets nationwide. States like Texas, Virginia and Georgia have seen massive investments, straining grids and prompting new generation proposals. Natural gas infrastructure in these regions positions it to capture incremental demand.

Longer-term forecasts suggest electricity demand growth will outpace recent decades due to AI, electrification and manufacturing reshoring. Meeting this demand affordably and reliably will require coordinated investment across the energy value chain.

Lazard’s findings align with other industry analyses showing rising costs for thermal generation. Fuel price forecasts, capital cost inflation and regulatory compliance all contribute to the trend.

The report also examines offshore wind, nuclear and other technologies. While nuclear offers carbon-free baseload power, high upfront costs and long construction times limit near-term deployment. Small modular reactors could change that dynamic in the 2030s.

Storage costs continue declining, enhancing renewables’ competitiveness. Batteries paired with solar can shift output to evening peaks, reducing reliance on gas peaker plants.

Transmission remains a bottleneck. Upgrading the grid to move power from resource-rich areas to demand centers is essential for optimizing the system cost-effectively.

Policymakers face difficult trade-offs. Supporting rapid renewable deployment can lower long-term costs and emissions, but ensuring reliability during the transition may require retaining or adding gas capacity.

The Lazard Levelized Cost of Energy report is widely referenced by utilities, developers and investors for its independent benchmarking. This year’s edition reflects updated assumptions on technology costs, capacity factors and financing.

As data center demand accelerates, power costs across the board are under scrutiny. Companies are exploring everything from on-site generation to long-term contracts with diverse suppliers to manage expenses and risks.

The energy transition is entering a more complex phase. While renewables dominate new capacity additions, dispatchable resources like natural gas remain critical for grid stability. Balancing these elements will determine the cost and reliability of U.S. electricity in the coming decade.

Monday’s market movements reflected broader commodity trends. Energy stocks advanced as oil prices rose on geopolitical developments, aligning with the sector’s sensitivity to supply risks.

For natural gas specifically, futures prices have responded to weather forecasts, storage levels and export demand. LNG terminals in the U.S. Gulf Coast continue shipping cargoes globally, linking domestic prices to international benchmarks.

The interplay between gas power costs and data center economics will shape corporate decisions. Hyperscalers seeking to minimize expenses may favor regions with abundant renewables and supportive transmission, while others prioritize reliability in gas-heavy markets.

Utilities planning new plants must weigh Lazard’s cost metrics against local conditions, regulatory hurdles and customer needs. The report serves as one input among many in a multifaceted decision process.

As the U.S. navigates record electricity demand growth, the cost of natural gas power reaching multi-year highs highlights the challenges ahead. Data centers are accelerating the need for new generation, forcing a reassessment of the optimal energy mix for reliability, affordability and emissions goals.

The coming years will test the industry’s ability to deliver power at scale while managing costs. Lazard’s analysis provides a valuable snapshot of current economics, informing strategies across the power sector.

SBI Funds Management has reduced the size of its IPO to Rs 9,813 crore from Rs 11,693 crore after raising about Rs 1,655 crore through a pre-IPO placement to 30 anchor investors. The issue will open for subscription on July 14 and close on July 16. The IPO is entirely an offer-for-sale (OFS) by State Bank of India and Amundi India Holding. Since there is no fresh issue, SBI Funds Management will not receive any proceeds from the IPO.

The pre-IPO placement was completed at Rs 574 per share, the upper end of the IPO price band. State Bank of India sold 28,832,748 equity shares, representing 1.42% of SBI Funds Management’s pre-IPO equity capital. According to SBI’s exchange filing, the bank signed the share purchase agreements on July 9. The transaction was scheduled to be completed by July 10.

PI Opportunities Fund-II was the largest buyer, acquiring 3,484,320 shares for about Rs 200 crore. Investor Akash Bhanshali also bought 3,484,320 shares for nearly Rs 200 crore, while 3P India Equity Fund I purchased 2,613,240 shares worth about Rs 150 crore.

Other investors in the pre-IPO placement included Malabar India Fund, Tata AIG General Insurance Company, Go Digit General Insurance, Anand Rathi Global Finance, Clarus Capital I, Carnelian Bharat Amritkaal Fund and Bennett Coleman & Co Ltd, along with other institutional and family office investors.

Also Read: SBI Funds among 6 IPOs on investors’ radar this week. GMPs indicate listing gains up to 118%

What does this mean?

The company is still not raising fresh capital because the IPO remains a pure OFS. The money goes to the selling shareholders, not to SBI Funds Management. For investors, the key signal is that large investors were willing to buy shares before the IPO at the top end of the price band, which gives some comfort on demand and valuation.

The smaller issue size can help bidding to some extent because fewer shares will now be available in the public offer. If demand stays strong, the reduced supply can improve subscription numbers, especially in institutional and HNI categories. It may also support sentiment around listing gains, helped by the current grey market premium of about 15%.

However, the impact should not be overstated. SBI Funds Management is still a large IPO, and listing performance will depend on overall market mood, subscription strength, valuation comfort and demand for AMC stocks. The pre-IPO placement is positive for confidence, but it does not change the basic nature of the offer, which remains an OFS by existing shareholders.

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SBI Funds IPO GMP

The shares are proposed to be listed on the BSE and NSE on July 21. The grey market premium stood at around 15%, indicating investor interest ahead of the issue opening.

The company has fixed a price band of Rs 545-574 per share. Investors can bid for a minimum of 26 shares and in multiples thereafter. At the upper end of the price band, one retail lot will cost Rs 14,924.

About SBI Funds Management

SBI Funds Management is India’s largest asset management company. It manages SBI Mutual Fund and is a joint venture between State Bank of India and Amundi. The company offers equity funds, debt funds, hybrid schemes, ETFs, index funds, PMS and other investment products.

The company had quarterly average assets under management of about Rs 12.5 lakh crore and a market share of around 15%. It benefits from SBI’s banking network, mutual fund distributor reach, strong SIP franchise and Amundi’s global investment and technology capabilities.

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For FY26, SBI Funds Management reported total income of Rs 4,976 crore, up 17% from Rs 4,236 crore in FY25. Profit after tax rose 21% to Rs 3,067 crore from Rs 2,540 crore. Return on net worth stood at 43.02%.

SBI Funds IPO valuation

At the upper price band, the IPO values SBI Funds Management at around 38 times FY26 earnings. Analysts have said the valuation is lower than several listed AMC peers, though the OFS structure means the company will not receive growth capital from the issue.

With the issue size now lower and institutional investors already coming in at the top end of the price band, the focus will shift to subscription demand when the IPO opens. Investors will also track grey market movement to assess possible listing gains.