fighting

12 US states sue to block Paramount Skydance $111B Warner Bros. Discovery takeover

Twelve state attorneys general have filed suit to stop Paramount Skydance’s proposed $111 billion acquisition of Warner Bros. Discovery, alleging it violates the Clayton Act. The states argue the deal would reduce competition, raise prices, hurt content quality and could give Paramount control of over 30% of theatrical releases. Paramount Skydance says the lawsuit misapplies antitrust law and that the merger is needed to compete with Netflix; Netflix previously withdrew from buying Warner Bros. Discovery.

• 12-state coalition sues under the Clayton Act
• States warn >30% market share for theatrical releases
• Alleged harms: higher prices, less competition, lower content quality
• Paramount disputes the suit and cites need to compete with Netflix