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A number of U.S. state attorneys general are reportedly suing Paramount to stop the company’s $111 billion takeover of Warner Bros. Discovery.
The coalition of states includes Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
Filed in California federal court on Monday, the states allege the acquisition will majorly throttle competition in theatrical distribution and cable licensing, along with a violation of the antitrust law known as the Clayton Act.
They’ve asked Paramount not to close the deal until the case is decided, and if Paramount doesn’t oblige, they say they’ll file a temporary restraining order. California Attorney General Bonta in a statement:
“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 United States.
California’s film and entertainment industry touches the lives of Americans daily – it comes into the living rooms of families, has a starring role in many young people’s first dates, and is a point of immense pride and employment for Californians up and down our state.”
Such a lawsuit could stretch on for years. The Justice Department in June signed off on Paramount’s bid to purchase Warner, saying the merger will increase competition in the markets for streaming, linear TV and films without any need for divestitures or concessions.
So far, antitrust enforcers in various other countries have found that the deal doesn’t violate antitrust laws, but Paramount still awaits regulatory approvals from the FCC, U.K. antitrust regulators and the European Commission.
Source: THR
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