Paramount Skydance owns the broadcast network CBS and TV channels like MTV and BET, while Warner Bros. Discovery owns CNN, TNT, and other major media brands
A coalition of 12 state attorneys general, led by California AG Rob Bonta, has sued to block Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery (WBD).
The lawsuit, filed in California federal court on Monday, argues that the deal would create an entity controlling nearly one-third of films and basic cable TV programming in the US.
AG Bonta said the “unlawful merger” would lead to higher prices and reduced entertainment content across theaters and cable distributors.
The DOJ has already green-lit the deal.
Paramount owns the broadcast network CBS and TV channels like MTV and BET, while Warner Bros. owns CNN and TNT, and other major media brands.
If the acquisition isn’t closed by September 30, Paramount must pay a ticking fee of 25 cents per share per quarter to WBD shareholders, totaling roughly $650 million in cash value per quarter.
The deal has drawn attention from UK regulators, who are investigating the proposed Paramount-Warner Bros. merger.
To win over critics, Paramount CEO David Ellison promised the merged studios would release 30 movies per year and protect jobs.