States sue to block Paramount/WBD merger that was approved by Trump admin
Summary
Twelve U.S. states, led by California, sued to stop a $111 billion merger between Paramount Skydance and Warner Bros. Discovery. The merger was approved by President Trump’s administration, but the states argue it will reduce competition, raise prices, and hurt movie theaters and TV viewers.Key Facts
- The merger would combine two big movie studios and merge streaming services Paramount+ and HBO Max.
- The U.S. Justice Department approved the deal on June 12, saying it wouldn’t harm competition or consumers.
- Twelve states filed the lawsuit in California, arguing the merger violates laws against reducing competition.
- The states claim the combined company would control over 85% of wide-release theatrical films and 59% of basic cable channels with Disney as the only major competitor.
- Paramount previously won approval for other acquisitions during the Trump administration after agreements like installing bias monitors.
- Paramount CEO promised changes at Warner-owned CNN, which aligns with President Trump’s concerns about the network.
- The states say a public promise to release “at least 30 films annually” is not legally binding and does not fix competition concerns.
- Paramount is reportedly considering moving its headquarters out of California due to the lawsuit.
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