Twelve US states are suing Paramount to block the Warner Bros | Media News

Twelve US states have sued Paramount to block its $110bn acquisition of Warner Bros Discovery, parent of CNN. reduce competition through film and cable TV.

The lawsuit, led by the state of California, says the merger could cause “significant damage to movie theaters, cable distributors and, ultimately, audiences across the country”, according to a statement from California Attorney General Rob Bonta’s office.

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The case also includes the attorneys general of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

After the merger, the combined company would control 27 percent of the world’s television licenses, and 75 percent of sports video distribution.

Bonta’s office said that without competition, a merger could raise prices for consumers.

“With this case, California and our sister states are fighting for free and fair markets, not fraudulent markets,” Bonta said in his statement, adding that the merger “will bring about higher prices, lower prices, and less cinema and television, destroying movie theaters, cable distributors, and ultimately, audiences on every couch and movie theater in the US”.

“With fewer opportunities after the merger, TV distributors and subscribers would face higher prices and reduced content revenue,” the 38-page complaint said.

The complaint comes as reports from Semafor indicate that Paramount CEO David Ellison is considering moving the studio’s headquarters to California as the dispute settles.

A decision on the case could take several months. The states have asked Paramount to delay closing the deal until the lawsuits are over. The states said that if the director of media under the leadership of Ellison does not comply, they will ask the court to do so.

This comes amid reports that authorities in the United Kingdom may also intervene.

Paramount has already committed to paying $650m to Warner Bros Discovery shareholders every quarter if the deal doesn’t close before October, and a delay could change the deal’s financials.

Although Paramount did not comment today, the company has previously said that any lawsuit could be politically motivated. David Ellison is the son of Oracle co-founder Larry Ellison, a close friend of US President Donald Trump.

“If allowed to pass, this merger would raise prices, reduce consumer choice, and cost many Americans their jobs while enriching billionaires and C-suite executives,” Washington State Representative Nick Brown said in a statement on the heels of the announcement.

The deal, which cleared Justice Department regulatory challenges last month, has been met with protests from actors, producers, and directors. In April, thousands of famous figures, including actors Robert De Niro, Ted Danson, and director JJ Abrams, asked the authorities to stop the merger.

“We are deeply concerned about the show of support for this union that puts the interests of a small group of powerful workers ahead of the good of the majority.” The integrity, freedom, and diversity of our industry could be severely compromised,” he said in an open letter.

Paramount has denied the claims, saying it will make more movies rather than fewer, with Ellison saying they will make 30 movies a year.

The upcoming merger is also troubling CNN, which is owned by Warner Bros. Discovery, as it worries that the merger could lead to changes similar to Ellison’s takeover of CBS News, where he installed Bari Weiss, a right-leaning journalist with no TV experience, to lead the network, raising concerns online.

Among the concerns are the growing number of reports criticizing the Trump administration and the hiring of a Trump appointee as an ombudsman to handle allegations of bias. The changes led to the departure of top network talent from CBS News, including reporter Scott Pelley, who accused Weiss of “killing” 60 Minutes, the long-running network news program. In June, CBS Mornings ratings dropped for the month.

Staff are concerned that Weiss may make a move to restructure CNN. Broadcast reporter Anderson Cooper is said to be leaving CNN if Weiss joins the network, and this comes as legal reporter Paula Reid is moving to MS Now.