The states have filed a lawsuit arguing that a merger of Hollywood giant studios Paramount and Warner would "extinguish competition" and increase consumer prices. The states claim the $110bn acquisition would limit competition in the TV and film industries. A group of 12 states led by California sued Paramount Skydance and Warner Bros.
Discovery today in an attempt to block a $111 billion merger that was greenlit by the Trump administration last month. "The unlawful merger of these two entertainment behemoths 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," California Attorney General Rob Bonta said. The merger would combine two of the largest movie studios and merge streaming service Paramount+ with HBO Max.
Netflix previously had a deal to buy WBD's streaming and movie studios businesses, but Paramount succeeded in a hostile takeover bid helped along by support from the Trump administration.Read full article Comments Bipartisan group argue in lawsuit that $110bn merger would hurt competition and lead to thousands of job lossesA dozen US state attorneys general are seeking to block the $110bn merger of Paramount Skydance and Warner Bros Discovery, arguing in a lawsuit filed on Monday that it would hurt competition and lead to higher prices for consumers.The coalition behind the lawsuit is led by the California attorney general, Rob Bonta, who has been a staunch critic of the merger since it was agreed to in February after a bidding war between David Ellison’s Paramount Skydance and Netflix. The lawsuit, filed by California and 11 other states, argues that the deal would harm movie theaters and damage America’s entertainment industry.
State attorneys general are said to be getting ready to file a lawsuit as soon as this week to halt the $111 billion deal, a potential major obstacle.
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