Overview
- The coalition of 12 state attorneys general filed a complaint in the U.S. District Court for the Northern District of California on Monday asking a judge to block the deal under Section 7 of the Clayton Act.
- The states allege the combined company would control about 27 percent of U.S. theatrical distribution, roughly 30 percent of blockbuster distribution, and about 27 percent of the cable channel market, and that those shares would harm consumers.
- The complaint lists major assets that would join under one owner, including Paramount Pictures, Warner Bros. Pictures, CNN and multiple cable networks such as MTV and Cartoon Network.
- Paramount has said it will fight the suit and points to prior approvals or favorable findings by federal agencies while also arguing the merger would cut roughly $6 billion in redundant costs and raise annual film production.
- The deal faces commercial pressure from contract terms that require quarterly payments of about $650 million to WBD shareholders if the acquisition does not close before October, and the outcome could shape future media consolidation and jobs in Hollywood.