California AG Rob Bonta blasts Paramount-WBD merger as ‘illegal’

Key Points:

• California Attorney General Rob Bonta, along with 11 other state attorneys general, filed a lawsuit to block Paramount’s $111 billion acquisition of Warner Bros. Discovery (WBD), arguing the merger would violate antitrust laws by reducing competition and harming consumers with higher prices and lower quality content.
• The lawsuit claims the merger would illegally consolidate power in three key markets: wide-release theatrical films, distribution of top-grossing films, and licensing of cable channels, potentially giving Paramount excessive control over movie theaters and cable providers.
• Paramount defends the merger, stating it would enhance competition against dominant streaming platforms like Netflix and benefit consumers, creators, and workers, while accusing the lawsuit of protecting streaming giants from competition.
• Bonta dismissed Paramount’s defense as self-serving and emphasized the state’s duty to enforce antitrust laws, rejecting threats by Paramount to relocate operations out of California in response to the legal challenge.
• The U.S. Department of Justice has closed its antitrust investigation into the deal without objections, but state attorneys general retain the authority to pursue legal action independently, as seen in this ongoing lawsuit.