A dozen states file lawsuit to block Paramount Skydance-Warner Bros. Discovery merger
Summary
Twelve state attorneys general sued to stop Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, saying the deal would reduce competition in movies and cable TV. Paramount disputes the lawsuit and says the merger will help compete with streaming services and protect jobs.Key Facts
- States involved include California, New York, Washington, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, and Oregon.
- The lawsuit claims the merger would lead to fewer companies controlling most movie distribution, limiting choice and raising prices.
- After the merger, three distributors would control 75% of widely released films, and four would control over 90% of top-grossing movies.
- The combined company would hold 27% of the cable TV market, making it the second and third largest players combined.
- California Attorney General Rob Bonta says the merger would harm movie theaters, cable distributors, and viewers by reducing content and quality.
- Industry groups like the Writers Guild of America and Cinema United support the lawsuit, fearing negative effects on jobs and local theaters.
- Paramount says the lawsuit misrepresents the market and argues the merger is needed to compete with streaming services and protect entertainment jobs.
- The U.S. Justice Department approved the merger in June, but regulators in the UK and EU are still reviewing the deal, with the EU considering required asset sales.
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