US state attorneys general file lawsuit in effort to block Paramount merger

The Paramount logo on the water tower at Paramount Studios in Los Angeles, California. Photograph: Mario Tama/Getty Images View image in fullscreen The Paramount logo on the water tower at Paramount Studios in Los Angeles, California. Photograph: Mario Tama/Getty Images US state attorneys general file lawsuit in effort to block Paramount merger A bipartisan group argue in lawsuit that $110bn merger would hurt competition and lead to thousands of job losses A bipartisan group of US state attorneys general are seeking to block the $110bn merger of Paramount Skydance and Warner Bros Discovery, arguing in a lawsuit filed on Monday that it would hurt competition and lead to higher prices for consumers. The coalition behind the lawsuit is led by the California attorney general, Rob Bonta, who has been a staunch critic of the merger since it was agreed to in February after a bidding war between David Ellison’s Paramount Skydance and Netflix. The lawsuit was joined by the states of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. “Today, I am leading a coalition of states in challenging the proposed merger of Warner Bros and Paramount and asking the court to block the deal,” Bonta said in a statement. “The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the US.” Bonta and his fellow state attorneys general are now asking a judge to stop the merger until the judicial process plays out. “In this country, no one is above the law,” he said. “With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy.” The lawsuit was filed in US district court for the northern district of California. The widely anticipated lawsuit comes weeks after the US Department of Justice signed off on the deal, clearing a major obstacle for the merger. While dozens of countries have also agreed to the deal, it still awaits approval from regulators in the UK and Europe. On 30 June, the UK culture secretary, Lisa Nandy , said she was “minded” to intervene and asked both the communications regulator, Ofcom, and the Competition and Markets Authority (CMA) to further investigate the deal, which would delay its timeline. Paramount Skydance and Ellison have maintained that the merger will increase competition and preserve the Hollywood theatrical status quo. “This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology and investment,” the company said in a statement after it received approval from the Trump administration. The close ties between David Ellis