Paramount Skydance Fights 12-State Bid to Halt $111 Billion WBD Merger
Updated
Updated · Variety · Jul 16
Paramount Skydance Fights 12-State Bid to Halt $111 Billion WBD Merger
3 articles · Updated · Variety · Jul 16
Summary
Paramount Skydance told a federal court that the states’ request to freeze its $111 billion merger with Warner Bros. Discovery rests on “one of the weakest merger challenges in modern antitrust history.”
In Thursday’s opposition filing, Paramount argued film competition would stay strong because rivals including Disney, Universal, Amazon MGM, Sony, Lionsgate, A24 and NEON can expand output if the merged company cuts releases.
The 12-state coalition led by California says the deal would give the combined company 30% of blockbuster film distribution and leave four studios controlling 93% of that market, hurting theaters and cable distributors.
On cable, Paramount said its channels and WBD’s are complementary rather than substitutes, while cord-cutting is already weakening programmers’ leverage over pay-TV providers.
A hearing on the states’ motion for a temporary restraining order is scheduled for 10 a.m. Friday before Judge Araceli Martinez-Olguin.