New Jersey Attorney General Jennifer Davenport has joined a coalition of twelve state attorneys general in filing a lawsuit seeking to block the proposed $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance Corporation, arguing the merger would reduce competition in the film and television industry.
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges the transaction violates a federal law prohibiting mergers that may substantially lessen competition or create a monopoly.
According to the attorneys general, the merger would combine two of Hollywood’s five major film distributors and two of the five major basic cable companies. If approved, the combined company would control roughly one-third of theatrical motion pictures and nearly one-third of basic cable programming in the United States.
The coalition has asked Warner Bros. and Paramount not to close the transaction until the judicial process is complete. If the companies decline, the attorneys general say they will seek a temporary restraining order to prevent the merger from closing while the case proceeds.
“New Jersey is the birthplace of the American film industry, and the state is now a burgeoning hub for film and television production. Given our state’s leadership in the film and television industry, we must protect our residents when corporate media monopolies threaten to upend the industry by raising prices and reducing content choices,” Davenport stated. “The proposed merger between Paramount and Warner Bros. Discovery will hurt our state’s residents, plain and simple. We will always stand up against corporate monopolists that seek to exploit hardworking New Jerseyans by driving up prices and turning a massive profit at their expense.”
The complaint alleges the merger would lessen competition in wide-release theatrical film distribution, where Warner Bros. and Paramount together would hold about 27% of the market.