Paramount, WBD hit with lawsuit from 12 states, including California, to block merger
Twelve U.S. state attorneys general sued to block the Paramount‑WBD merger over antitrust concerns.Summary
On Monday, attorneys general from 12 states, led by California’s Rob Bonta, filed a lawsuit in the U.S. District Court for the Northern District of California to block the proposed acquisition of Warner Bros. Discovery by Paramount Skydance. The suit cites antitrust concerns that the combined company would control nearly a third of U.S. film and basic‑cable TV programming, potentially raising prices, lowering quality, and reducing content for consumers.
Paramount CEO David Ellison has said the merger would create a stronger, well‑capitalized media company that could compete with streaming giants like Netflix, and the company plans to defend the transaction, arguing it would increase competition and provide more choice for consumers. The merger has already received shareholder approval and is expected to close by September, but a $650 million quarterly ticking fee would apply if the deal is delayed.
The U.S. Department of Justice and several global regulators have cleared the deal, though the European Commission is still reviewing it with a provisional deadline of July 22. The lawsuit also drew support from the Writers Guild of America and Cinema United, which warn that consolidation could harm jobs, wages, and local movie theaters.
(Source：Google News)