Posted in: HBO, Max, Movies, Paramount+, TV | Tagged: paramount, Warner Bros

Paramount/Warner Bros Deal Hit with Antitrust Lawsuit From 12 States

The $110 billion deal between Paramount and Warner Bros Discovery has been hit with an antitrust lawsuit from 12 state attorneys general.

There were rumblings over the past few weeks that a number of states would be looking to challenge the $110 billion deal between David Ellison's Paramount Skydance and David Zaslav's Warner Bros Discovery. Those rumblings got louder over the weekend, so much so that there were reports that Ellison was considering moving Paramount out of the state if California Attorney General Rob Bonta moved ahead with an antitrust lawsuit. On Monday, that's exactly what Bonta did, filing the suit on behalf of California and the attorneys general of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

"Today, I am leading a coalition of states in challenging the proposed merger of Warner Bros. and Paramount and asking the court to block the deal. 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.," shared Bonta in a statement.

He continued, "California's film and entertainment industry touches the lives of Americans daily – it comes into the living rooms of families, has a starring role in many young people's first dates, and is a point of immense pride and employment for Californians up and down our state. Consolidation here not only leads to higher prices – it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences. In this country, no one is above the law. 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." Here's a look at what the lawsuit claims the proposed merger would be in violation of (and you can check out the entire press release from Bonta's office here):

The lawsuit, filed in the U.S. District for the Northern District of California, alleges that the merger violates Section 7 of the Clayton Act, which holds that mergers that may substantially lessen competition or tend to create a monopoly are illegal. The attorneys general allege that, if Warner Bros. and Paramount are allowed to merge, it would lessen competition in the areas of:

• Wide Release Theatrical Film Distribution, where Warner Bros. and Paramount are two of the five major film distributors and would combine for around 27% share of the market. After the merger, only three distributors will control 75% of these films and only four distributors (Defendants, Disney, Universal, and Sony) will control 86% of them.
• Anticipated Top-Grossing Theatrical Film Distribution, a submarket of theatrical film distribution focused on anticipated blockbuster films with wide audiences and large production budgets. After the merger, Defendants will control more than 30% of these films, and four distributors (Defendants, Disney, Universal, and Sony) will control more than 90% of them.
• Licensing Basic Cable Television Channels, or the market for distributing basic cable channels to cable and satellite providers. Warner Bros. is the second largest and Paramount is the third largest in this market, and they would combine for a 27% share.

Enjoyed this? Please share on social media!

Stay up-to-date and support the site by following Bleeding Cool on Google News today!