If you don’t like it, sue! It’s the American way. Some states don’t like the idea of Paramount and Warner Bros. Discovery pairing up, so the lawyers have been called.
U.S. state attorneys general are limbering up to try and block the $111 billion acquisition of WBD.
A coalition has been formed. It contains Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
The Hollywood Reporter says they filed their case in California federal court on Monday, making the allegation that there will be negative impacts on competition in theatrical distribution, it will influence cable licensing, and violate the Clayton Act – antitrust law.
They’ve threatened a temporary restraining order if Paramount doesn’t pause the deal.
California Attorney General Bonta in a statement:
“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 United States.
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.”
The Justice Department already signed off the deal in June, and numerous other countries regulators have given the OK for the deal to go ahead.
Regulatory approvals from the FCC, U.K. antitrust regulators and the European Commission are still outstanding.
