July 13 (UPI) — The attorneys general of 12 states sued Monday to block the proposed merger of Paramount and Warner Bros., saying it would undermine competition in the entertainment industry.
A news release announcing the lawsuit from New York Attorney General Letitia James said Paramount Skydance Corp.’s purchase of Warner Bros. Discovery Inc. “would combine two of the five major film studios and two of the five major basic cable companies, creating a massive conglomerate in markets for basic cable and theatrical film releases.”
“For over a century, Paramount and Warner Bros. have competed to create movies and television that bring people together, inspire and sustain generations of artists, and help us understand the world,” James said. “This merger would destroy that competitions, creating a massive company with unprecedented power and influence over news and entertainment across the globe.”
The release said the merger would increase costs for consumers and put jobs at risk.
The lawsuit comes one month after the Justice Department approved the planned merger, saying it doesn’t harm consumers in the United States.
Warner Bros. shareholders gave their blessing to the merger in April after Paramount offered to buy the company for $31 per share — a deal worth $110 billion.
Joining New York in the lawsuit were Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon and Washington.
Deadline reported that Paramount could threaten to leave California in retaliation for the state’s involvement in the lawsuit. California Attorney General Rob Bonta described the two companies as “behemoths” in the entertainment industry and said their merger would lead to higher prices, lower quality and less content for consumers.
“California’s film and entertainment industry touches the lives of Americans daily — it comes into the living rooms of families, has a starring role in many young people’s first dates, and is a point of immense pride and employment for Californians up and down our state,” he said in a news release.
“Consolidation here not only leads to higher prices — it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences.”
