12 states sue to block Paramount’s $110B Warner Bros deal
A coalition of 12 state attorneys general is filing a lawsuit to block the merger of Paramount Skydance and Warner Bros. Discovery (WBD), alleging that the deal would harm movie theaters, basic cable distributors, and audiences.
The coalition, led by California Attorney General Rob Bonta, argues that the acquisition violates the Clayton Act, which prohibits mergers that may substantially lessen competition or tend to create a monopoly. The attorneys general allege that if the two companies are allowed to merge, it would lessen competition in three areas: wide release theatrical film distribution, “top-grossing” theatrical distribution, and basic cable licensing.
The deal would combine two notable film studios as well as streaming platforms Paramount+ and HBO Max. It would also create one of the largest portfolios of television networks, bringing together Paramount’s CBS and MTV with WBD’s CNN and HBO.
The proposed acquisition has already received scrutinyfrom filmmakers, actors...
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