(KMJ) At a press conference Monday in front of the famed Hollywood sign, California Attorney General Rob Bonta announced an effort stop what could become one of the biggest media mergers in history. But one movie studio is not going down without a fight.
A coalition of 12 states, led by California, has filed a federal lawsuit seeking to block Paramount Skydance’s proposed $110-Billion acquisition of Warner Bros. Discovery.
The states argue the deal would combine two of Hollywood’s biggest film distributors and major cable television companies, giving the merged corporation control of roughly one-third of the nation’s movie and cable programming.
Bonta says the merger would reduce competition, drive up prices, lower quality, and limit the variety of movies and television content available to consumers. The lawsuit claims the deal violates federal antitrust law by substantially lessening competition in the entertainment industry.
But Paramount is snapping back, arguing the deal would actually boost competition.
“The lawsuit filed by the state attorneys general, in the most generous light, reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law.”
“We will vigorously defend the transaction and demonstrate that this challenge is inconsistent with sound competition policy and the competitive realities of the media marketplace,” a spokesman said.
Warner Bros. shareholders and regulators have already approved the acquisition, but the court challenge now threatens to delay — or potentially derail — the blockbuster deal.
