A coalition of 12 US states has filed a lawsuit seeking to block the merger of media companies Paramount and Warner Bros. Discovery, valued at $110 billion, arguing that the deal could significantly restrict competition in the market. This was reported by the BBC, writes UNN.
Details
The lawsuit is led by the state of California. Attorney General Rob Bonta stated that after the merger, the new company would control over a quarter of major film premieres, and together with Disney, Universal, and Sony, four media giants would concentrate 86% of this market in their hands. According to him, this could lead to higher prices, lower quality, and reduced content choices for viewers.
The lawsuit notes that movie theaters and cable operators will be the most affected, as they will lose the ability to negotiate with competing studios over content pricing. This, according to the plaintiffs, will ultimately lead to more expensive movie tickets, higher cable television costs, and fewer choices for consumers.
Paramount called the lawsuit "fundamentally flawed" and stated that it intends to vigorously defend the legality of the deal. The company also emphasized that a delay in the merger could negatively impact entertainment industry workers, who have already suffered significant losses due to the rapid growth in popularity of streaming services.