California Leads 12-State Lawsuit to Block Paramount–Warner Bros. Deal

A Paramount-Warner combo would bring together two of Hollywood's last five legacy studios.

A multistate lawsuit claims the merger would lead to higher prices and fewer entertainment options for consumers.

A dozen states have sued to block Paramount Skydance’s takeover of Warner Bros. Discovery. The suit, led by California attorney general Rob Bonta, was filed in federal court in California’s Northern District, CNBC reports. The timing is pointed. The Justice Department approved the roughly $110bn deal last month without conditions or divestitures, after an eight-month review. […] This story continues at The Next Web

A coalition of 12 states led by California is suing to block the $111 billion Paramount Skydance-Warner Bros. merger, arguing it would reduce competition in theatrical distribution, blockbuster films, and basic cable licensing. The challenge (PDF) defies the DOJ's approval of the deal. Variety reports: The coalition, led by California Attorney General Rob Bonta, alleges that the $111 billion transaction violates the Clayton Act by lessening competition in three distinct markets: wide-release theatrical distribution, "top-grossing" theatrical distribution, and basic cable licensing. "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 U.S.," Bonta said in a statement on Monday. The suit argues that the combined company will control 27% of the wide-release theatrical distribution market, 30% of the submarket comprising "anticipated blockbuster films," and 27% of the basic cable bundle. The states argue that such consolidation will harm theaters and cable and satellite providers that rely on competition among distributors. Paramount and Warner Bros. are two of the five remaining legacy studios. Together, all five -- including Disney, Sony and Universal -- control 86% of theatrical distribution and 90% of blockbuster distribution, the states said. Warner Bros. and Paramount are also the second- and third-largest basic cable distributors, respectively. [...] The states are expected to seek an injunction to block the transaction, which Paramount expects to close sometime after July 22. The 12 states in the coalition are Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. [...] All are represented by Democratic attorneys general. "Consolidation here not only leads to higher prices -- it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences," Bonta said. "In this country, no one is above the law. With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy." Read more of this story at Slashdot.

The states claim the $110bn acquisition would limit competition in the TV and film industries.

Twelve US states have sued to block Paramount from acquiring Warner Bros. Discovery in a $110bn deal.