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12 states sue to block Paramount-Warner merger, citing competition fears
🇺🇸 United States /Economy & Trade

12 states sue to block Paramount-Warner merger, citing competition fears

From PBS NewsHour · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Under investigation
  • Twelve U.S. states have filed a lawsuit to block the proposed $81 billion merger between Paramount and Warner Bros. Discovery.
  • The states argue the merger would stifle competition in Hollywood, leading to higher prices and reduced content choices for consumers.
  • Paramount contends the lawsuit distorts antitrust law and that the merger would create a stronger competitor against dominant streaming platforms.

A coalition of twelve U.S. states is challenging the proposed $81 billion merger between Paramount and Warner Bros. Discovery, arguing the deal would "extinguish competition" in Hollywood and harm consumers nationwide.

California Attorney General Rob Bonta, leading the legal challenge, stated that audiences would feel the impact of the "unlawful merger" through higher prices, fewer movie and TV show options, and a general decline in content quality. The proposed combination would unite major assets, including Warner's HBO Max and its extensive film and TV libraries, with Paramount's CBS and Paramount+ streaming service.

Audiences on every sofa and in every movie (theater) seat would feel the impact of this unlawful merger.

— Rob BontaCalifornia Attorney General Rob Bonta described the potential negative impact on consumers.

The states' complaint also asserts that the merger would significantly harm movie theaters and basic cable distributors. They are seeking to prevent the companies from finalizing the deal until the judicial process concludes, with plans to file a temporary restraining order if necessary.

distorts settled antitrust law

— ParamountParamount's response to the lawsuit, arguing it misinterprets existing laws.

Paramount, however, has pushed back against the lawsuit, calling it a distortion of antitrust law. The company argues that the merger would actually foster a more competitive landscape, better equipped to challenge dominant streaming and technology companies that have negatively impacted the film industry and employment. Paramount vowed to "vigorously defend" the transaction.

The lawsuit arrives at a critical juncture for the deal, which has already received approval from shareholders and the Trump administration. Paramount and Warner Bros. Discovery had aimed to close the transaction in the third quarter of this year, but the states' legal action could significantly delay these plans. Paramount has offered financial compensation to shareholders if the deal is not completed by a certain date and has agreed to a substantial regulatory termination fee.

stronger competitor against dominant streaming and technology platforms who have harmed the market for theatrical exhibition and jobs in the entertainment industry.

— ParamountParamount's justification for the merger, positioning it as a move to counter larger tech companies.
DistantNews Editorial

Originally published by PBS NewsHour in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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