Twelve state attorneys general sued Monday to stop Paramount and Warner Bros Discovery from merging, challenging a $110 billion deal that the states say would reduce competition across film and television.
The lawsuit was brought by California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. According to the states, combining the two companies would create what they called a “media behemoth” with too much leverage over entertainment markets.
The attorneys general argue that the deal would illegally harm competition. They warn that moviegoers could face higher prices and that cable television distributors could be squeezed by a larger combined company with broader control over programming.
The challenge lands after the Justice Department chose last month not to block the transaction. Politico reported that federal antitrust officials had allowed the merger to proceed. The Wall Street Journal reported that the decision surprised career staff at the Justice Department, who had been leaning toward recommending a lawsuit.
The states’ case keeps the merger fight alive even after federal antitrust enforcers stepped aside. State attorneys general can bring their own competition lawsuits, and this one targets the same basic pressure point that has shaped years of media consolidation fights: whether fewer large studio and television owners mean less bargaining room for theaters, distributors and viewers.
Paramount and Warner Bros Discovery have framed the transaction as a merger agreement, according to reporting on the deal. The states are asking a court to stop it, arguing that the combined company would have enough scale to distort competition rather than just compete more efficiently.
The complaint adds another obstacle to one of the largest proposed media combinations in recent years. For now, the confirmed fight is narrow but consequential: a dozen states say the merger violates competition law, while the Justice Department has declined to bring its own case.
This story draws on original reporting from The Verge.
