California And Other States Challenge Massive Paramount-Warner Bros. Merger In New Lawsuit

A coalition of 12 state attorneys general filed a lawsuit on Monday to block the Paramount-Warner Bros. merger, challenging the $111 billion acquisition that California Attorney General Rob Bonta claims is “unlawful” and could harm movie theaters and consumers.Key factsAccording to Bonta, the merger would result in “higher prices, lower quality, and less content for film and television,” which would harm audiences, potentially leading to higher prices and worse variety and quality for films.The proposed megadeal would merge two of Hollywood’s “big five” studios, giving one company control of almost one third of theatrical movies and almost one third of all basic cable television content, according to the lawsuit.The suit also warns the merger could lead to the “decline of theatrical exhibition of films,” potentially hurting movie theaters and basic cable distributors.The massive deal was already greenlit by the Trump administration in June, about four months after Paramount outbid rival Netflix to purchase the company.What states are suing over the Paramount-Warner Bros. deal?Along with California, Democratic attorneys general from 11 other states joined in the suit. Those states are: Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. The group asked the two companies to close the deal until the legal process ends.