California-led lawsuit challenges Paramount-Warner merger

California and 11 other states have filed a lawsuit to block Paramount's proposed $110 billion acquisition of Warner Bros. Discovery, arguing the deal would reduce competition in film distribution and cable television. California Attorney General Rob Bonta said the merger would harm competition and consumers, stating, "With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy," and noted the combined company would control 27 % of U.S. film distribution, 30 % of blockbuster film distribution and 27 % of basic cable channels. The states warn the merger could hurt theaters and pay‑TV distributors, while actors, writers and theater owners oppose it over fears of job losses and fewer films. Paramount defends the deal, saying it would eliminate about $6 billion in overlapping costs and release 30 films yearly, and notes the U.S. Department of Justice has already cleared the acquisition. The lawsuit could delay the transaction for months, costing Paramount hundreds of millions, and the company faces quarterly $650 million fees to Warner Bros. Discovery shareholders if the deal does not close by October.

(Source：Los Angeles Herald)