12 states sue to block Paramount's $110B Warner Bros. deal
A coalition of 12 state attorneys general has filed a lawsuit to block Paramount's proposed $110 billion merger with Warner Bros. Discovery, citing concerns over reduced competition.
12 States Sue to Block Paramount-Warner Bros. Merger
Twelve state attorneys general have filed a lawsuit seeking to block the proposed $110 billion merger between Paramount Global and Warner Bros. Discovery (WBD). The coalition, led by California Attorney General Rob Bonta, alleges that the deal would harm movie theaters, basic cable distributors, and audiences by significantly reducing competition.
The lawsuit argues that the acquisition violates the Clayton Act, which prohibits mergers that could substantially lessen competition or tend to create a monopoly. The states contend that the combined entity would lessen competition in three key areas: wide release theatrical film distribution, "top-grossing" theatrical distribution, and basic cable licensing.
The proposed merger would combine two major film studios and streaming platforms, Paramount+ and HBO Max, and create one of the largest portfolios of television networks, including CBS, MTV, CNN, and HBO. Critics, including filmmakers and actors, have raised concerns that the deal would further consolidate the U.S. media industry.
Paramount has stated that the combined film studios would release 30 films annually. However, the states argue that the deal would give the merged company significant control over the entertainment market, with an alleged 27% share of U.S. film distribution and 27% of the basic cable channel market. Paramount's CEO had previously indicated an expected closing date for the deal in September.