Nearly 12 State AGs Prepare Suit to Block $111 Billion Paramount-WBD Merger
Updated
Updated · Deadline · Jun 15
Nearly 12 State AGs Prepare Suit to Block $111 Billion Paramount-WBD Merger
3 articles · Updated · Deadline · Jun 15
Summary
Nearly a dozen state attorneys general, led by California's Rob Bonta, are preparing a lawsuit within weeks to derail or extract concessions from Paramount’s $111 billion acquisition of Warner Bros Discovery.
The planned challenge comes despite the U.S. Justice Department approving the deal last week without conditions, with Bonta saying the merger is still under investigation and New York confirming it is part of the state coalition.
September 30 is a key deadline for Paramount: if the merger is not closed by then, the company would owe Warner Bros Discovery shareholders hundreds of millions of dollars in monthly ticking fees.
Jeffrey Kessler, hired by the Ellisons to defend the deal, said the merger would not reduce competition in Hollywood and urged states to bring a case only if they can prove an antitrust violation.
Los Angeles politics and labor fears are intensifying the fight, with more than 5,000 entertainment figures backing scrutiny as local leaders warn the merger could trigger further layoffs after roughly 40,000 industry job losses in recent years.