‘Laws were broken’: multistate effort to stop Paramount’s $111bn merger heads to court

Rob Bonta, California’s attorney general, holds a press conference about the lawsuit against the mega-merger next to the Hollywood sign in Los Angeles, California, on Monday. Photograph: Daniel Cole/ReutersView image in fullscreenRob Bonta, California’s attorney general, holds a press conference about the lawsuit against the mega-merger next to the Hollywood sign in Los Angeles, California, on Monday. Photograph: Daniel Cole/ReutersMedia‘Laws were broken’: multistate effort to stop Paramount’s $111bn merger heads to courtAttorneys general from 12 states are suing to block the Paramount-Warner Bros deal they say violates antitrust law

A last-ditch effort to block the merger between Paramount Skydance and Warner Bros Discovery (WBD) is heading to court as 12 Democratic state attorneys general attempt to stop the $111bn deal they say violates antitrust law and reduces competition in both the film and cable television industries.

The lawsuit, which was filed on Monday, faces a crucial hearing on Friday to determine if a judge will temporarily pause the deal or allow it to continue toward approval. The merger was already approved by the Department of Justice in June.

California’s attorney general, Rob Bonta, who is leading the suit, told the Guardian on Thursday he was optimistic about their chances in court. The lawsuit argues that the merger violates the Clayton Act, a federal antitrust law that prohibits illegal market concentration.

“In our complaint, it’s really clean, clear, concise,” he said. “It’s precise with the data points that we’ve shared and courts have traditionally accepted exactly those types of arguments and that kind of data as a basis for finding a merger to be presumptively unlawful.”

Bonta said he was “disappointed” that no Republican attorneys general signed on to the Paramount case, though he was able to form a bipartisan coalition that has been successful at temporarily blocking the merger of the television conglomerates Nexstar and Tegna.

“I hope it’s not because of any pressure from the head of the Republican party, Donald Trump, on any those Republican entities, because antitrust cases should be non-partisan or bipartisan,” he added. “They’re just about free and fair markets, and I think we all agree on that.”

Washington state’s attorney general, Nick Brown, said he was surprised by the volume of constituents who contacted his office to express concern about the merger, which would lead to less competition among film distributors and streaming services and could lead to higher prices for consumers.

New Jersey’s attorney general, Jennifer Davenport, agreed that the top concern was higher prices and fewer content choices for consumers.

“We just knew that it was bad for New Jerseyans,” Davenport said. “This is more important than ever that we fight for the competition in the industry, because we are seeing it as just another component of rising costs in our state.”

The concerns raised in the lawsuit, including the potential for reduced competition, are particularly relevant for New Jersey, which has seen a wave of recent investment by major studios and entertainment companies thanks to generous tax credits.

Netflix plans to invest $1bn to create a new production facility in Fort Monmouth, New Jersey, while Lionsgate is building a dedicated production facility in Newark. Paramount, the defendant in the case, is slated to serve as the anchor tenant for a 58-acre facility called 1888 Studios.