The Paramount-Warner Bros. Clock Is Ticking: What’s Next for the Megamerger Amid Antitrust Battle With States?
1 and the WBD merger is not a done deal, Paramount is looking at shelling out real money. What does Paramount say about the state AG’s antitrust lawsuit?...
Key points
- 1 and the WBD merger is not a done deal, Paramount is looking at shelling out real money.
- What does Paramount say about the state AG’s antitrust lawsuit?
- The company called it “one of the weakest merger challenges in modern antitrust history.” The lawsuit filed by the state AGs “distorts settled antitrust law and is based on a misrepresentation of competition in the entertainment industry today,” Paramount said, adding that it will “vigorously defend the transaction.” Regarding the states’ allegations the merged company would wield undue market power in basic cable, Paramount said 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.
- From the get-go, Paramount has insisted its merger with WBD present no antitrust issues.
What happened
1 and the WBD merger is not a done deal, Paramount is looking at shelling out real money. What does Paramount say about the state AG’s antitrust lawsuit? The company called it “one of the weakest merger challenges in modern antitrust history.” The lawsuit filed by the state AGs “distorts settled antitrust law and is based on a misrepresentation of competition in the entertainment industry today,” Paramount said, adding that it will “vigorously defend the transaction.” Regarding the states’ allegations the merged company would wield undue market power in basic cable, Paramount said 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. From the get-go, Paramount has insisted its merger with WBD present no antitrust issues. Could Paramount reach a settlement with the states? Would the states drop their suit if Paramount agreed to spin off CNN?