Insurance
Home›Insurance›Industry & Deals›States sue to block Paramount from acquiring Warner Br…
States sue to block Paramount from acquiring Warner Bros Discovery
The lawsuit alleges the combination would give Paramount control over 27% of the film distribution market and 27% of basic cable channels, potentially raising prices for consumers.
California and 11 states filed a federal lawsuit to block Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery, arguing the deal would create a dominant media company able to raise prices across film and television.
According to the lawsuit, filed in Oakland federal court, the states say the transaction would also harm theaters and television distributors, make wages less competitive for workers, and ultimately affect consumers.
Insurance Journal reports the states contend Paramount would control 27% of the distribution market for films across the United States, 30% of blockbuster film distribution, and 27% of the market for basic cable channels.
Paramount, led by CEO David Ellison, said the suit misrepresents competition and distorts settled antitrust law. The outlet also notes Democratic attorneys general involved in the case argued the DOJ cleared the deal, while critics cited political ties as factors that helped it move forward.