Paramount Denounces Antitrust Suit Over $110 Billion Warner Bros. Discovery Deal
Paramount said a lawsuit filed by 12 states to block its merger with Warner Bros. Discovery would hurt entertainment workers and contradict competition policy, pledging to defend the transaction.
Paramount issued a statement on Monday rejecting a lawsuit filed by attorneys general from 12 states that seeks to stop the company's $110 billion acquisition of Warner Bros. Discovery. The company called the suit a "fundamentally flawed application of the antitrust laws" and said it will "vigorously defend the transaction".
"Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs," the spokesperson said.
Paramount argued that the merger would create a "stronger, well-capitalized, creative-first media company" capable of competing with dominant streaming platforms such as Netflix. The company said blocking the deal would reduce competition, limit consumer choice and restrict opportunities for creators and workers.
The lawsuit alleges that the combined entity would control a large share of the pay-TV and movie studio markets, potentially leading to higher prices and fewer options for customers. The legal challenge arrives as regulators in the United Kingdom and the European Union near the end of their reviews. Paramount has indicated it will pay a penalty if the merger does not close by September 30 and cited approvals already obtained from several global agencies.