Oregon Joins Multistate Lawsuit Seeking To Block $110 Billion Warner Bros.-Paramount Merger
SALEM, OR – Oregon Attorney General Dan Rayfield and attorneys general from 11 other states have filed a federal lawsuit seeking to block Paramount Skydance Corporation’s proposed $110 billion acquisition of Warner Bros. Discovery, arguing the merger would reduce competition and lead to higher prices, fewer jobs and fewer entertainment choices.
The lawsuit, filed in U.S. District Court for the Northern District of California, alleges the merger would violate Section 7 of the Clayton Act by substantially lessening competition in the film and television industries.
According to the complaint, the combined company would control nearly one-third of U.S. theatrical motion picture distribution and nearly one-third of the nation’s basic cable programming. The states argue the merger would combine two of Hollywood’s five major film distributors and two of the five largest basic cable companies, reducing competition for movie theaters, cable and satellite providers, and consumers.
The attorneys general contend the merger would leave just three companies controlling about 75% of wide-release theatrical film distribution and four companies controlling more than 90% of anticipated blockbuster film distribution.
The lawsuit also alleges the combined company would hold about a 27% share of the market for licensing basic cable television channels to cable and satellite providers, reducing distributors’ ability to negotiate competitive programming agreements.
Rayfield said Oregon’s investigation into the proposed merger has been underway for several weeks. Last week, the state asked a Multnomah County judge to order Paramount to produce records Oregon says it has sought since June, including documents related to the company’s lobbying of the White House and the U.S. Department of Justice during the federal review of the merger.
The coalition said it is prepared to seek a temporary restraining order if Paramount and Warner Bros. do not delay closing the transaction until the legal challenge is resolved.
Joining Oregon in the lawsuit are the attorneys general of California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York and Washington.