12 US states sue to block Paramount
Twelve US states have filed a lawsuit to block the proposed acquisition of Warner Bros. Discovery by Paramount Skydance Corporation. The states argue the merger would harm market competition and lead to higher prices for consumers.
Why it matters
This legal action highlights ongoing antitrust concerns regarding consolidation in the media and entertainment industry.
LOS ANGELES – California and 11 other US states filed a federal lawsuit on Monday seeking to block Paramount Skydance Corporation's acquisition of Warner Bros. Discovery (WBD), alleging that the deal would reduce competition in film distribution and cable television licensing.
California Attorney General Rob Bonta said the states were "fighting for free and fair markets, not rigged markets." The lawsuit was filed in the US District Court for the Northern District of California.
"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 US," Bonta noted in a press release.
In February, Paramount agreed to pay $31 in cash per WBD share, valuing WBD at $81 billion in equity value and $110 billion in enterprise value.
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