New Jersey joins lawsuit seeking to block Paramount-Warner Bros. merger
Attorney General Jennifer Davenport says the proposed $110 billion media merger would reduce competition, raise prices and limit consumer choices.
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New Jersey has joined a multistate lawsuit seeking to block Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery, arguing the merger would reduce competition and lead to higher prices and fewer entertainment choices for consumers.
Attorney General Jennifer Davenport announced Monday that New Jersey is part of a coalition of 12 attorneys general challenging the merger in U.S. District Court for the Northern District of California.
The lawsuit alleges the merger would combine two of Hollywood's five major film distributors and two of the nation's five largest basic cable programmers, giving the combined company control of roughly one-third of the U.S. theatrical film market and nearly one-third of basic cable programming.
"New Jersey is the birthplace of the American film industry, and the state is now a burgeoning hub for film and television production," Davenport said in a statement. "The proposed merger between Paramount and Warner Bros. Discovery will hurt our state's residents, plain and simple."
According to the lawsuit, the merger would lessen competition in theatrical film distribution, blockbuster film releases and the licensing of basic cable television channels. The attorneys general argue the loss of competition would give the merged company greater leverage in negotiations with movie theaters and cable providers, potentially resulting in higher prices, fewer content choices and reduced investment in new programming.
The coalition has asked Paramount and Warner Bros. Discovery not to complete the merger while the case is pending. If the companies refuse, the states said they will seek a temporary restraining order to block the deal from closing.
New Jersey joined attorneys general from California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Mexico, New York, Oregon and Washington in filing the lawsuit.
(Photo Credit: AP Photo/Jae C. Hong)
