A total of twelve US states have sued to block Paramount Skydance's $110 billion (€96.2 billion) acquisition of Warner Bros. Discovery — the largest-ever merger in Hollywood — arguing that the deal would hurt competition and raise prices in film and television.
The California-led legal action — filed in Oakland federal court on Monday — challenges Paramount CEO David Ellison's ambitions to transform his media company into a major rival of Netflix and Disney.
The lawsuit comes after the transaction was green-lighted by the US Justice Department (DOJ) without conditions. The DOJ said the acquisition was unlikely to harm competition or consumers.
California Attorney General Rob Bonta — who is leading the case — called the merger of two of Hollywood's last five legacy studios "unlawful" and stressed that it would result in "higher prices, lower quality, and less content" for audiences.
"Audiences on every sofa and in every movie (theater) seat would feel the impact of this unlawful merger," Bonta said as he addressed a news conference.
