Paramount and Warner Bros. sued to block $110 billion mega-merger

A dozen US states have joined forces to block the $110bn (£85bn) merger between Warner Bros and Paramount, the biggest media consolidation in Hollywood history, saying it would weaken competition and raise consumer prices.

A state group led by California filed a lawsuit to block the deal.

California Attorney General Rob Bonta said the merger would ultimately hurt “audiences on every couch and movie theater seat in America.”

If it goes ahead, the new company will handle more than a quarter of major movie releases. Along with Disney, Universal and Sony, four conglomerates control 86 percent of that market.

The merger of Paramount and Warner Bros. will end a century-long rivalry between two of Hollywood’s biggest rivals.

Between them, they own franchises like legends. Harry Potter, Batman, Mission: Impossible, And Top gunwith television giants like CNN, MTV and Nickelodeon.

The regulatory challenge is a major hurdle for the entertainment giants as they try to consolidate operations.

In June, the US Department of Justice He approved. The combination.

But a coalition of attorneys general has asked the companies to halt the transaction pending a judicial review, threatening a temporary restraining order if they don’t.

If approved, the combined titan would control nearly one-third of the U.S. theatrical motion picture market and basic cable programming.

“The drive to higher prices, lower quality and less content for film and television will hurt movie theaters, basic cable distributors, and ultimately the audience on every couch and movie theater seat in the U.S.,” Bonta said.

The legal challenge focuses on three main sectors: major cinema releases, blockbusters and cable TV channels.

The states argue that losing this competition would deprive movie theaters and television networks of critical bargaining power. Currently, if a studio asks an unfair price, a distributor can go and deal with the competitor.

Without that option, the suit argues, theaters and TV networks face higher fees — costs that will ultimately result in more expensive tickets, higher cable bills and fewer choices.

“There is nothing to justify these significant harms to competition,” the lawsuit says.

However, supporters of the deal point out that the traditional media world is in crisis.

Cable TV audiences are shrinking fast, and cinema attendance faces continued pressure from tech giants and streaming platforms, making scale an economic necessity.

In a statement, Paramount called the lawsuit “fundamentally flawed” and “false” and said it would “vigorously defend the transaction.”

“Delaying this transaction will hurt recreation workers who have suffered in recent years as technology has disrupted their livelihoods and cost California tens of thousands of recreation jobs,” he added.

The BBC has contacted Warner Bros for comment.