States make last-ditch effort to stop the Paramount ‘media behemoth’
State attorneys general are attempting to halt the $110 billion Paramount and Warner Bros. Discovery merger, citing concerns over market dominance and potential price hikes. The lawsuit follows a controversial decision by the Justice Department not to block the deal.
Why it matters
The merger faces intense scrutiny due to its potential impact on media diversity and the political implications of CNN's future ownership.
A dozen state attorneys general are trying to block the $110 billion merger of Paramount and Warner Bros Discovery they warn would raise movie prices and crush cable TV distributors.
The states — California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington — filed suit on Monday, arguing the combination would illegally harm competition and create a “media behemoth.” Last month, the Justice Department declined to block the merger in a decision that The Wall Street Journal reported surprised career staff who were leaning toward recommending a lawsuit. In an exit interview with Politico, former DOJ acting antitrust chief Omeed Assefi rejected the report as “not accurate.”
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