TRENTON — New Jersey Attorney General Jennifer Davenport has joined 11 other state attorneys general in a federal lawsuit seeking to block Paramount Skydance Corp.’s proposed $110 billion acquisition of Warner Bros. Discovery Inc.
The coalition alleges the merger would eliminate competition between two major movie studios and cable programmers, potentially resulting in higher prices, fewer entertainment choices and reduced bargaining power for movie theaters and television distributors.
If approved, the combined company would control about 27% of widely released theatrical films and roughly 27% of the basic cable programming market, according to the lawsuit. It would also distribute more than 30% of movies expected to become major box-office hits.
The complaint, filed in U.S. District Court for the Northern District of California, claims the deal would violate the Clayton Act’s prohibition against mergers that may substantially reduce competition or contribute to a monopoly.
Davenport said the merger could particularly affect New Jersey, which has become a growing center for film and television production. The states argue that ending competition between Paramount and Warner Bros. could weaken incentives to create new content while raising costs for theaters, cable providers and consumers.
The coalition has asked the companies to delay completing the transaction until the lawsuit is resolved. If they refuse, the attorneys general said they will seek a temporary restraining order to prevent the merger from closing while the case proceeds.
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