Paramount Skydance’s takeover of Warner Bros. Discovery is facing a new legal hurdle from a dozen states. A coalition of 12 states filed a lawsuit in federal court in California on Monday seeking to block the merger, which they argue would harm movie theaters, cable providers and consumers. “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 Attorney General Rob Bonta, who is leading the case, said in a press release. “With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy.” The other 11 states that joined the lawsuit are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
What’s in the suit? According to the lawsuit, the combined company would control a 27% share of the market for wide-release theatrical films in the United States. The deal would also reduce the country’s five major film distributors to only four, which would collectively control 86% of wide-release movies.
