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Paramount files statement saying states' antitrust suit misses point of merger
A.V. Club • • business
Key Points:
- Paramount's legal response to the antitrust complaint argues that the states' case relies on an outdated view of Hollywood, ignoring the competitive threat posed by tech companies like Netflix, Apple, and Amazon entering the film market.
- The filing acknowledges the rise of streaming platforms dominating theatrical releases and claims that a merger is necessary for traditional studios like Paramount to remain competitive.
- Paramount challenges the states' authority to litigate the issue, noting that the Department of Justice has already cleared the merger and responding point-by-point to the original complaint.
- The filing highlights support from major American theater chains, which reportedly favor the merger due to promises of continued steady releases of big movies, although the trade organization Cinema United has not formally endorsed the plan.
