Paramount Slams States’ Lawsuit Over Warner Bros. Merger as ‘One of the Weakest’ in Modern History
Paramount Skydance began to lay out its legal argument Thursday against an antitrust lawsuit brought by a dozen states, calling it “one of the weakest...
Key points
- Paramount Skydance began to lay out its legal argument Thursday against an antitrust lawsuit brought by a dozen states, calling it “one of the weakest merger challenges in modern antitrust history.” Paramount’s lawyers filed an opposition to the states’ motion for a temporary restraining order, which would pause the $111 billion merger with Warner Bros.
- In it, Paramount argued that the states’ claim that the merger will harm competition is contradicted by the “real-world economics” of the film business.
- Paramount argued that Amazon MGM, or other distributors like A24 or Lionsgate, could increase production levels if Paramount cut its output, undercutting any pricing power that Paramount might have over theater chains.
- The states have also argued that Paramount and Warner Bros.
What happened
Paramount Skydance began to lay out its legal argument Thursday against an antitrust lawsuit brought by a dozen states, calling it “one of the weakest merger challenges in modern antitrust history.” Paramount’s lawyers filed an opposition to the states’ motion for a temporary restraining order, which would pause the $111 billion merger with Warner Bros. In it, Paramount argued that the states’ claim that the merger will harm competition is contradicted by the “real-world economics” of the film business. Paramount argued that Amazon MGM, or other distributors like A24 or Lionsgate, could increase production levels if Paramount cut its output, undercutting any pricing power that Paramount might have over theater chains. The states have also argued that Paramount and Warner Bros. In response, Paramount argued that the Paramount and WBD cable lineups are complementary — and not market substitutes — and that cable providers will still want access to all of the channels. Paramount also argued that cord-cutting is eroding the leverage of all cable channel owners.
Related on this blog
- WGA Sues to Block Paramount-Warner Bros. Merger, Alleging Writers Will Be Paid Less and Have Fewer Opportunities if Deal Goes Through
- Paramount Blasts States’ Lawsuit Aimed at Blocking Warner Bros. Deal, Claims Litigation Will ‘Shield’ Netflix and Tech Companies From ‘Much-Needed Competition’
- States Sue to Block Paramount-Warner Bros. Merger, Defying DOJ