A coalition of state attorneys general has filed suit to stop Paramount from completing its $111 billion takeover of Warner Bros. Discovery — the company that holds the TV rights to AEW programming.
The lawsuit was filed Monday in California federal court. The states argue the deal would badly damage competition in wide-release and top-grossing theatrical distribution, as well as cable licensing, putting it in violation of antitrust law.
Their argument, combining two of Hollywood’s top five studios would mean higher prices, fewer films in theaters, and a drop-off in the variety and quality of content available to consumers.
The suit alleges a violation of the Clayton Act, the federal law used to head off monopolies before they form. The states are asking Paramount to hold off closing the deal until the case plays out in court. If that doesn’t happen, they’ve said a temporary restraining order will follow.
The coalition includes Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
California Attorney General Rob Bonta didn’t hold back on the stakes involved, stating the following:
“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. 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.”
(H/T: The Hollywood Reporter)
