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Twelve US states oppose Paramount's acquisition of Warner Bros.
🇨🇭 Switzerland /Economy & Trade

Twelve US states oppose Paramount's acquisition of Warner Bros.

From Le Temps · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

News Named sources In the courts
  • Twelve US states have filed lawsuits opposing the proposed $111 billion acquisition of Warner Bros. Discovery by Paramount Skydance.
  • California's Attorney General argues the merger would lead to higher prices, lower quality, and reduced content for consumers.
  • Paramount contends the lawsuit unfairly protects major streaming platforms like Netflix and argues the merger will create a stronger competitor in the media landscape.

A coalition of twelve US states, led by California Attorney General Rob Bonta, has launched legal action to block the proposed $111 billion acquisition of Warner Bros. Discovery by Paramount Skydance. The states argue that the merger of two of the top five film distributors in the US would harm consumers by resulting in higher prices, diminished quality, and less content availability.

Bonta stated that "no one is above the law" and that the states are fighting for "free and fair markets, not rigged markets." The lawsuit asserts that the transaction violates the federal Clayton Act, which prohibits mergers that could significantly reduce competition. The states involved in the suit are all part of the Democratic party: California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

In this country, nobody is above the law.

— Rob BontaCalifornia's Attorney General explaining the states' motivation for suing to block the merger.

Paramount, however, has strongly refuted the lawsuit, calling it "fundamentally flawed." A spokesperson for the company argued that the legal challenge serves to protect large streaming platforms like Netflix and tech companies from much-needed competition. Paramount, which secured the deal after Netflix withdrew its rival offer in February, believes the combined entity will emerge as a formidable competitor against industry giants like Netflix, Amazon, and Apple.

The company has committed to releasing at least thirty films annually, with a minimum theatrical run of 45 days. Paramount's platforms, including Paramount+, HBO Max, and discovery+, currently trail behind the subscriber numbers of Netflix, Amazon Prime, and Disney+. The proposed merger awaits approval from European authorities, while a significant portion of Hollywood expresses concern over potential job losses in an industry already grappling with consolidation and layoffs.

The effect of this lawsuit is to protect the big streaming platforms like Netflix and the tech companies from competition that is so needed.

— Paramount spokespersonParamount's response to the antitrust lawsuit filed by twelve US states.
DistantNews Editorial

Originally published by Le Temps in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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