U.S. preps antitrust lawsuit to halt Paramount's acquisition of Warner Bros.

A coalition of American states, spearheaded by California and New York, is drafting a lawsuit aimed at stopping Paramount Skydance's $110 billion buyout of Warner Bros. The planned litigation is expected to be filed in the coming weeks. California Attorney General Rob Bonta has led the state-level response, criticizing the "abdication" of federal antitrust agencies by President Donald Trump. Market confidence wavered following the news, with Warner Bros. shares dropping 3.6% and Paramount shares sliding 6.7%. While merger lawsuits can cause delays, Paramount has agreed to pay regulatory delay fees of approximately $6.9 million per day. Despite the impending state actions, analysts note that Paramount's political connections could ease its path with federal watchdogs. The U.S. Department of Justice is likely to reach a decision soon, having already issued subpoenas to investigate the merger's impact on studio output and competition. Paramount has defended the transaction, arguing it benefits consumers and fosters greater competition. To address industry concerns, Paramount has pledged to maintain production lots and release a minimum of 30 theatrical films annually. However, the deal continues to face criticism from actors, writers, and theatre owners who fear job losses and reduced market competition.

(Source：Afaqs)