“Antitrust enforcement is democracy’s check on oligarchy,” Bonta said. “Antitrust enforcement is a check on billionaire currying favor with the president so he’ll doing their bidding.”
More than a dozen state attorneys general have filed a lawsuit seeking to prevent the planned $110 billion merger of Paramount Skydance and Warner Bros Discovery, arguing in court that the move would likely stifle competition and raise prices for consumers across the country.
According to The Guardian, the coalition is being led by California Attorney General Rob Bonta, an outspoken critic of the merger since its announcement in February. Bonta’s co-plaintiffs in the complaint include the attorneys general for the states of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. It is possible that other states may join the action before it is resolved.
“Today, I am leading a coalition of states in challenging the proposed merger of Warner Bros and Paramount and asking the court to block the deal,” Bonta said in a press release announcing the lawsuit. “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 US.”
The lawsuit, notes The Guardian, was filed about one month after the U.S. Department of Justice authorized the merger. Dozens of foreign governments have also voiced their approval, though Paramount and Warner Bros continue to await decisions from regulators in both the United Kingdom and the European Union.
Both companies have protested Bonta’s lawsuit, saying the merger will increase—rather than suppress—competition.
“The lawsuit filed by the state attorneys general, in the most generous light, reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law,” Paramount said in a statement. “We will vigorously defend the transaction and demonstrate that this challenge is inconsistent with sound competition policy and the competitive realities of the media marketplace. Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs.”
Bonta, though, has repeatedly pointed out that many of the figures involved in the deal—including Paramount Skydance’s David Ellison, the son of Oracle founder and billionaire Larry Elison—have close ties to the Trump administration, suggesting that the merger could’ve been pushed through without intense scrutiny.
“Antitrust enforcement is democracy’s check on oligarchy,” Bonta said. “Antitrust enforcement is a check on billionaire currying favor with the president so he’ll doing their bidding.”
Bonta also shared his belief that the merger could lead to cuts at affected news agencies, which could include both CBS News and CNN.
“This merger will mean fewer journalists informing the electorate,” he said. “It will mean fewer opportunities for Americans to hear the full breadth of information and opinions on a subject, and then come to their own conclusions.”
Sources
Attorney General Bonta Files Lawsuit to Block $110 Billion Warner Bros./Paramount Merger
Attorney General James Sues to Block Paramount’s Merger with Warner Bros.
States sue to stop Paramount-Warner Bros blockbuster merger
US state attorneys general file lawsuit in effort to block Paramount merger
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