A federal judge is set to rule on a temporary restraining order in a case that pits state attorneys general against Warner Bros. Discovery and Paramount Skydance. The case, which was argued in the U.S. District Court for the Northern District of California, centers on a proposed $110 billion merger between the two entertainment companies.
Merger Details
Warner Bros. Discovery and Paramount Skydance want to merge in order to better compete against streaming services like Netflix. The merger would combine two of the five major film studios and more than 50 basic cable channels. California Attorney General Rob Bonta is leading a coalition of fellow Democratic attorneys general seeking to block the merger, citing concerns over higher prices, lower content quality, and fewer movies and TV shows.
The attorneys general argue that the merger would result in a combined company that would pocket more than a quarter of every dollar generated in America through box office sales. James Weingarten, the attorney for the plaintiff states, stated that the merger is the “largest merger in Hollywood history.”
Response from Warner Bros. and Paramount
Jeffrey Kessler, the attorney hired by Paramount to defend its acquisition of Warner Bros. Discovery, argued that the states’ attorneys general have not made their case for a temporary restraining order. Kessler stated that the merger is necessary for the companies to compete in the rapidly changing entertainment industry.
Original reporting: KTBS 3 (Shreveport) — read the source article.
