Paramount-Warner Bros Discovery $110 billion merger faces lawsuit from California, 11 other states
California and 11 other US states have filed a lawsuit to block Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery, arguing that the deal would reduce competition in the entertainment industry and ultimately hurt moviegoers, television distributors and consumers, reported Reuters.
The lawsuit marks one of the biggest legal challenges yet to Paramount CEO David Ellison’s plan to expand the company into a stronger rival to streaming giants Netflix and Disney. The states say that combining two of Hollywood’s biggest studios would give the merged company too much control over film distribution and cable television, allowing it to exercise greater influence over prices and content.
