California, 11 states suing to block Paramount's $110 billion Warner Bros deal
The states say the merger would control nearly one-third of theatrical film distribution and basic cable programming.
- On Monday, a coalition of 12 state attorneys general led by California Attorney General Rob Bonta filed an antitrust lawsuit in the Northern District of California to block the proposed $110 billion Paramount-Warner Bros. Discovery merger.
- Attorneys general allege the transaction would create a monopoly by combining two of the five major film studios, controlling 27% of theatrical distribution and 30% of blockbuster films, reducing competition and harming consumers.
- Calling the lawsuit "a fundamentally flawed application of the antitrust laws," Paramount Skydance vowed to "vigorously defend" the transaction, arguing it shields streaming rivals like Netflix from meaningful competition.
- Paramount pledged a $650 million quarterly "ticking fee" to shareholders if the acquisition does not close by September 30, exposing the company to significant costs from potential legal delays.
- While the U.S. Department of Justice approved the deal last month without conditions, the states' intervention tests whether officials can successfully block a merger previously blessed by federal regulators.
485 Articles
485 Articles
Unions and states sue to block Paramount-Warner Bros. megamerger
LOS ANGELES—Not even Paramount’s announcement of the return of horror icon Freddy Krueger from the popular Nightmare on Elm Street film franchise could eclipse the news that unions and over a dozen states are suing to block the studio’s monster of a merger with Warner Bros. this week. On July 13, California led a coalition of states to court to stop what they consider a disastrous move for workers in the entertainment industry and consumers. The…
Media giant Paramount Skydance CEO David Ellison and his father Larry Ellison are being sued by a shareholder who wants to stop the purchase of Warner Bros Discovery worth over a trillion kronor, Variety reports.
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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…
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