12 States Challenge Paramount’s Takeover of Warner, Say Merger Would ‘Extinguish Competition’
The states say the deal would give the combined company about 30% of top-grossing film distribution and raise prices for consumers.
- On Monday, a coalition of 12 states filed a federal antitrust lawsuit seeking to block Paramount's proposed $81 billion acquisition of Warner Bros. Discovery, alleging the merger violates Section 7 of the Clayton Act.
- Alleging an 'illegal bribery scheme,' shareholder Paul Robbins filed a separate derivative lawsuit accusing Paramount CEO David Ellison and his father Larry Ellison of promising President Donald Trump regulatory benefits to secure approval.
- The Writers Guild of America filed its own antitrust lawsuit on Tuesday, warning consolidation would result in "fewer jobs, lower wages for entertainment workers, less variety of programming, and higher prices for consumers."
- California Attorney General Rob Bonta's coalition requested a temporary restraining order, with a hearing scheduled for Friday before U.S. District Judge P. Casey Pitts to halt the transaction.
- Defending the deal, Paramount maintains the lawsuit "distorts settled antitrust law" and argues the merger creates a stronger competitor against dominant streaming platforms like Netflix.
50 Articles
50 Articles
Unions and states sue to block Paramount-Warner Bros. megamerger
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States fear Paramount-Warner deal will squeeze theaters
States suing to block Paramount's merger with Warner Bros Discovery argue that the deal could squeeze local movie theaters, which are still struggling to sell as many tickets as they did before the pandemic.
Paramount Rejects Shareholder Lawsuit Over Warner Bros. Discovery Merger, Denies Promises on CNN Coverage
Paramount has asked a judge to dismiss a shareholder lawsuit alleging it made misleading promises about CNN's coverage while pursuing its proposed merger with Warner Bros. Discovery. The high-stakes corporate battle over Hollywood's landscape continues to intensify as legal hurdles mount against the pending mega-merger. Paramount Skydance is facing sharp pushback from several fronts, including a newly surfaced derivative action that attacks the …
Democrat AGs want to break up media companies they don't like
California’s Democrat Attorney General Rob Bonta has filed a lawsuit with 11 other state attorneys general to block the pending merger of Paramount-Skydance and Warner Brothers Discovery. Bonta either misunderstands or is ignoring the economics of the proposed deal, punishing his least favorite media company in the process. The complaint filed in the Federal District Court for the Northern District of California alleges that this deal would resu…
12 states challenge Paramount’s takeover of Warner, say merger would ‘extinguish competition’
Twelve states are suing to block Paramount’s takeover of Warner Bros. Discovery. They argued in a lawsuit Monday that the $81 billion merger would “extinguish competition” in Hollywood and lead to fewer choices for consumers across the U.S. The office of California’s attorney general is leading the coalition. It alleges that the proposed merger would lead to higher prices, lower quality, and less content for movies and the television landscape. …
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