Paramount’s Acquisition Of Warner Bros. Discovery Update – Group of State Attorneys Sue Paramount to Stop Takeover of Warner Bros. Discovery

As noted before, Warner Bros Discovery announced this past April that their shareholders had voted in approval of Paramount Skydance’s acquisition deal for the company. The United States Department of Justice officially approved Paramount’s acquisition deal for WBD this past June. WBD is the current media broadcast partner of AEW.

The Hollywood Reporter reported that a group of state attorneys filed a joint lawsuit on Monday before a California federal court against Paramount to prevent the conglomerate from taking over WBD.

In the filing, the state attorneys claim that Paramount’s acquisition will “substantially throttle competition in wide-release and top-grossing theatrical distribution and cable licensing in violation of antitrust laws.” The state attorneys also claim that the merger will combine two of the top five studios in Hollywood leading to higher prices, fewer movies in theaters, and a reduction in the variety and quality of content for consumers.

The state attorneys also allege that this acquisition deal is a violation of the Clayton Act, which is an antitrust law accounting for potential monopolies.

The state attorneys reportedly are asking Paramount to not close the deal until the case is decided and if not, they will file a temporary restraining order.

It was reported that the group of state attorneys comprise of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

In a press conference held in Hollywood, California Attorney General Rob Bonta stated:

“The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S. California’s film and entertainment industry touches the lives of Americans daily — it comes into the living rooms of families, has a starring role in many young people’s first dates, and is a point of immense pride and employment for Californians up and down our state.”