States Sue to Block Paramount-Warner Bros. Merger, Defying DOJ
A coalition of 12 states filed an antitrust lawsuit on Monday to block the merger of Paramount Skydance and Warner Bros., defying the Department of...
Key points
- A coalition of 12 states filed an antitrust lawsuit on Monday to block the merger of Paramount Skydance and Warner Bros., defying the Department of Justice, which approved the deal last month.
- The coalition, led by California Attorney General Rob Bonta, alleges that the $111 billion transaction violates the Clayton Act by lessening competition in three distinct markets: wide-release theatrical distribution, “top-grossing” theatrical distribution, and basic cable licensing.
- “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.,” Bonta said in a statement on Monday.
- Together, all five — including Disney, Sony and Universal — control 86% of theatrical distribution and 90% of blockbuster distribution, the states said.
What happened
A coalition of 12 states filed an antitrust lawsuit on Monday to block the merger of Paramount Skydance and Warner Bros., defying the Department of Justice, which approved the deal last month. The coalition, led by California Attorney General Rob Bonta, alleges that the $111 billion transaction violates the Clayton Act by lessening competition in three distinct markets: wide-release theatrical distribution, “top-grossing” theatrical distribution, and basic cable licensing. “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.,” Bonta said in a statement on Monday. Together, all five — including Disney, Sony and Universal — control 86% of theatrical distribution and 90% of blockbuster distribution, the states said. and Paramount are also the second- and third-largest basic cable distributors, respectively. “From California’s standpoint, the deal is going to lead to more production and to better jobs and more jobs for talent in California and elsewhere.” The DOJ gave its...
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