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Dozens of state attorneys general are trying to prevent A $110 billion merger Paramount and Warner Bros. Discovery, they warn, will 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 a lawsuit on Monday, arguing that the merger would illegally harm competition and create a “media giant.” Last month the Ministry of Justice Reject the ban Integration into the decision The Wall Street Journal I mentioned Professional staff who were inclined to recommend filing a lawsuit were surprised. In an exit interview with POLITICOThe Justice Department’s former acting antitrust chief, Omid Asefi, dismissed the report as “inaccurate.”
“(F)or every dollar generated from broadband theatrical films and basic cable in this country, the combined company would receive more than a quarter.”
But according to States suitThe merger would result in the merger of two of the five “major movie distributors” and owners of basic cable channels, meaning that “for every dollar generated by broadband theatrical movies and basic cable channels in this country, the combined company would receive more than a quarter.” In a press releaseParamount said the lawsuit is “based on a misrepresentation of competition in today’s entertainment industry” and that delaying it would harm consumers and entertainment talent.
The merger has raised concerns in Hollywood and in political circles, in part because it would put CNN under the control of David Ellison, the son of close ally of President Donald Trump Larry Ellison. some Former CBS journalists They warned against politically charged interference in programming after Ellison’s exploit Free press Founder Barry Weiss to head the network, and ratings under its Weiss It is said that it has decreased.
The lawsuit threatens to be costly for Paramount if it delays the deal from closing by September 30. that it committed to a 25 cents per share “registration fee” to WBD shareholders for each quarter delayed thereafter, approximately 650 million dollars For every quarter.
