State Attorneys Sue Paramount To Stop Takeover Of Warner Bros. Discovery

An update on Paramount’s acquisition of Warner Bros. Discovery.

A group of state attorneys banded together to file a lawsuit against Paramount to prevent the media and entertainment conglomerate from taking over Warner Bros. Discovery in the $111 billion deal.

The Hollywood Reporter wrote the following:

In a much-anticipated lawsuit filed in California federal court on Monday, the states allege that the acquisition will substantially throttle competition in wide-release and top-grossing theatrical distribution and cable licensing in violation of antitrust laws. They argue that the merger will combine two of the top five studios in Hollywood, leading to higher prices, fewer movies in theaters and a reduction in the variety and quality of content.

The states allege a violation of the Clayton Act, an antitrust law accounting for potential monopolies. They’ve asked Paramount not to close the deal until the case is decided. If not, they say they’ll file a temporary restraining order. The coalition is comprised of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.

“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 U.S.,” said California Attorney General Bonta. “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.”

As more information becomes available, we’ll update you here on Fightful.