Paramount Seeks Dismissal of Antitrust Lawsuit Against Warner Bros. Deal
Paramount Skydance has filed a motion to dismiss a lawsuit by streaming subscribers that challenges its $111 billion acquisition of Warner Bros. Discovery, citing lack of factual support in the allegations.
Paramount Skydance filed a motion in U.S. District Court for the Northern District of California on June 3, aiming to dismiss a federal lawsuit that seeks to block its $111 billion acquisition of Warner Bros. Discovery. Five streaming subscribers allege that the merger would violate antitrust laws through increased prices and reduced viewing options, claiming damages as consumers. Paramount's legal team argues that these allegations lack factual foundation, stating that the transaction is intended to enhance competition in the entertainment industry.
In its filing, Paramount characterized the lawsuit as a misguided effort to politicize antitrust law, asserting that the merger would not harm competition but rather provide greater opportunities for investment and content creation. Jeffrey Kessler, representing Paramount, noted that the lawsuit fails to demonstrate how the deal would harm competition and pointed out the future benefits it may bring to consumers and the industry. A Paramount representative reiterated that the proposed transaction poses no credible antitrust concerns, emphasizing that it would allow for more consumer choice and robust theatrical exhibition.
Despite substantial industry pushback, including opposition from over 5,500 Hollywood professionals and calls for scrutiny from House Democrats, Paramount maintains that the merger is essential to effectively compete against larger streaming platforms like Netflix and Disney+. The legal team cautioned that blocking the merger could inflict significant harm on Paramount, hindering its ability to compete. A court hearing on the matter is set for July 16.