Minnesota AG joins lawsuit to block $110B Warner Bros.-Paramount merger
(FOX 9) - Minnesota is joining a legal challenge targeting the largest media merger in history, arguing that it would ultimately be a bad deal for customers.
AG Ellison joins lawsuit to block Warner Bros.-Paramount merger
What we know:
Minnesota Attorney General Keith Ellison has joined a coalition of 11 other attorneys general, filing a lawsuit to stop the $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance Corporation.
The suit alleges the merger would violate antitrust laws by creating a media conglomerate that would control nearly one-third of all U.S.-based theatrical movies.
The combined company would control about 27% of the market for wide-release theatrical films and basic cable channels. Only three distributors would control 75% of wide-release films, and four — including Disney, Universal, and Sony — would control 86%, the lawsuit alleges.
The lawsuit also points out that Warner Bros. is currently the second largest and Paramount the third largest in licensing basic cable channels, and together they would control 27% of that market. The merger would combine two of Hollywood’s five major film distributors and two of the five major basic cable companies, eliminating competition and harming movie theaters, cable distributors and consumers.
What they're saying:
"Minnesotans deserve a fair and competitive marketplace, not one where a handful of giant corporations control what we watch, what we pay, and what choices we have," AG Ellison said in a statement. "This would be the largest merger in media and entertainment history. It will raise prices, limit innovation, and reduce the variety of voices in media and entertainment. I’m taking action because this goes too far in consolidating power with a few at the expense of the public."
What's next:
The coalition has asked Warner Bros. and Paramount not to close the merger until after the judicial process concludes. If the companies refuse, the attorneys general plan to file a temporary restraining order to halt the deal.
The Source: Information provided in a statement from the Minnesota Attorney General’s Office.