Twelve state attorneys general filed suit on Monday to block the $110 billion merger of Paramount and Warner Bros Discovery, warning the combined company would raise movie prices and harm cable TV distributors, according to The Verge.
Key facts
- A dozen state attorneys general filed suit on Monday against the merger, according to The Verge.
- The deal between Paramount and Warner Bros Discovery is valued at $110 billion.
- The states warn the merger would raise movie prices and hurt cable TV distributors.
- Participating states are California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
A dozen state attorneys general are making a last-ditch effort to block the $110 billion merger of Paramount and Warner Bros Discovery, which they warn would raise movie prices and hurt cable TV distributors, according to The Verge.
The states filed suit on Monday, The Verge reported. The Verge described the proposed combined company as a ‘media behemoth’ in its coverage of the challenge.
The attorneys general joining the challenge are from California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington, per The Verge.
According to The Verge, the states argue the merger would raise movie prices for audiences and crush cable TV distributors that depend on access to the companies’ content.
The legal action represents a coordinated attempt by state officials to intervene in one of the largest proposed media consolidations. It was not immediately clear from the source how the companies have responded to the suit.
Why it matters
The proposed merger would combine two of the largest names in film and television, and its outcome could affect what consumers pay for movies and how cable distributors operate. The states' challenge is one of the largest attempts to intervene in a proposed media consolidation.
Frequently asked questions
Which states are suing to block the Paramount merger?
California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington, according to The Verge.
How much is the Paramount and Warner Bros Discovery merger worth?
The merger is valued at $110 billion, according to The Verge.
Why do the states want to block the merger?
The attorneys general warn the deal would raise movie prices and crush cable TV distributors, per The Verge.