FCC Chair David Carr calls states' challenge to Paramount-WBD merger 'illegitimate'

Key Points:

• FCC Chairman Brendan Carr criticized the multistate lawsuit led by California aiming to block Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, calling it “not a legitimate antitrust case” and expressing doubt it will succeed.
• Carr questioned the states’ antitrust arguments, particularly the focus on spinning off CNN, and dismissed allegations that the FCC accepted gifts from Paramount, stating these claims lack any basis.
• The coalition of 12 states argues the merger would reduce competition in film distribution and cable programming, potentially leading to higher prices, fewer films, and less investment in content, and is seeking court orders to block the deal.
• A separate shareholder derivative lawsuit alleges Paramount insiders compromised editorial independence for favorable treatment from the Trump administration, while states and local officials debate the merger’s economic impact, with some encouraging Paramount to relocate operations.
• Local political figures, including Los Angeles City councilwoman Nithya Raman, support the legal challenge, warning the merger could harm jobs, creative freedom, and increase costs for consumers in California.