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States Sue to Block Paramount/WBD Merger

Ars Technica •
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States have filed a lawsuit to block the Paramount/Warner Bros. Discovery merger that was approved by the Trump administration. The lawsuit argues that theaters, distributors, and the public should not rely on "empty commitments" and are better served if the companies continue competing.

States allege the merger gives Paramount excessive control over TV programming markets, enabling leverage over distributors. A distributor rejecting fee demands risks losing channels like CNN, Nickelodeon, Cartoon Network, HGTV, Food Network, TNT, and TBS. This would force higher fees passed to subscribers as higher monthly bills.

John Bergmayer, legal director at Public Knowledge, said state attorneys general are "doing the job the Justice Department refused to do." He warned the merger would give one company power over content creation, theater offerings, distributor payments, and audience access, leading to fewer films, worse theater terms, higher ticket prices, higher cable bills, and less programming investment.

Paramount maintains confidence the transaction raises no antitrust concerns, noting dozens of global antitrust authorities have cleared it. The company says it continues engaging constructively with remaining regulators.