Paramount argues antitrust suit overlooks competition from streaming services
Paramount contended that the states' lawsuit mischaracterizes the merger's purpose, which it says is to enable the combined company to compete with major streaming platforms rather than with traditional studios.
Paramount filed a response to the antitrust complaint filed by attorneys general from 12 states, asserting that the lawsuit is based on an outdated view of the film industry that treats legacy studios as direct rivals. The studio said the $111 billion merger is intended to create a company capable of competing with streaming giants such as Netflix, Amazon and Apple, which have reshaped the market in recent years.
The filing noted that major theater chains have expressed support for the merger, suggesting they believe the combined entity will sustain a steady flow of large-scale releases. Paramount also challenged the states' standing to pursue the case, referencing a prior Department of Justice review that cleared the transaction.
"The merger will allow us to better compete in a landscape dominated by technology-driven platforms," the company’s statement read.
The response highlighted that the states' arguments rely on a model of competition that does not reflect the current influence of digital streaming services on theatrical attendance.