A federal lawsuit is taking aim at the $110 billion merger between Paramount Skydance and Warner Bros. Discovery Inc. A group of consumers filed the complaint Thursday in the US District Court for the Northern District of California.
The plaintiffs say the deal will hurt competition, drive up prices, and damage journalism.
Their filing argues the combined company would have increased ability to raise consumer prices, reduce theatrical output, and diminish the quality and diversity of news programming.
The suit invokes the Clayton Act, which bars anti-competitive mergers and allows private individuals to sue. Plaintiffs are asking the court to block the deal entirely. They also want Paramount Skydance stripped of any interest in Paramount Global.
The complaint targets three markets: premium video distribution, national TV news, and theatrical releases. On the film side, plaintiffs warn the merger would leave moviegoers with fewer titles, less genre variety, and fewer meaningful choices at local theaters.
“If Paramount’s proposed acquisition of Warner Bros. Discovery is consummated, the combined firm would have increased ability and incentive to reduce theatrical film output and narrow release slates,” the filing states.
Paramount’s portfolio includes CBS News, Paramount+, Nickelodeon, MTV, BET, and Showtime. Warner Bros. brings HBO, HBO Max, Discovery Channel, HGTV, and Food Network.
Paramount announced the merger agreement in February. The company has not publicly responded to the lawsuit.
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