12 states sue Paramount to block Warner Bros. discovery deal

Attorneys general from 12 states have sued Paramount Skydance to stop its $110 billion merger agreement with Warner Bros. Discovery. suit, Filed in US District Court For the Northern District of California, it cites concerns about monopoly and decreased competition across the film and cable industries and among audiences in general. The deal Remove obstacles With the US Department of Justice in June, the agency said the merger would not likely cause harm or “raise actionable antitrust concerns.”

California Attorney General Rob Bonta is leading the effort with his counterparts from New York, New Jersey, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Mexico, Oregon and Washington. The group of attorneys general is asking Paramount to halt the process until after litigation, or they plan to file a temporary restraining order. According to the group, Warner Bros. will take control. Discovery and Paramount would have a 27% market share in the theatrical distribution space, and 27% of cable and satellite distribution if the deal goes through.

“The illegal merger of these two entertainment giants will result in higher prices, lower quality, and less movie and TV content, hurting movie theaters, essential cable distributors, and, ultimately, audiences on every couch and movie theater seat in the United States,” Bonta said in a statement.

It is expected that the media deal, which is described as the largest of its kind in Hollywood history, will be completed Combining Paramount and WBDBusiness flow to one platform. The combination of studios, film and television companies and cable networks is also expected to result in a major corporate restructuring within both companies. The European Union is still examining the deal and is scheduled to issue approval or rejection this month.