Paramount and Warner Bros. Discovery have agreed to delay closing their $81 billion merger well into next year. The move comes as a judge considers a challenge from 12 states seeking to block the deal altogether.
States’ Challenge
The states, led by California Attorney General Rob Bonta, argue that the merger would "substantially lessen competition" in the entertainment industry. They claim that the combination of two of the last five legacy studios in Hollywood would lead to fewer choices for consumers, particularly moviegoers and cable customers.
Paramount has repeatedly called the states’ claims meritless and not reflective of the current industry. The company points to tech and streaming giants’ growing reach across the entertainment industry and argues the merger would help it compete with bigger rivals like Netflix.
Regulatory Approval
The U.S. Justice Department announced in June that it wouldn’t challenge the merger, and instead released a statement ruling that a Paramount-Warner tie up would bring "benefits for American consumers and workers." However, the European Union has given the deal its blessing, conditional on company commitments to adjust film distribution partnerships.
Original reporting: KTBS 3 (Shreveport) — read the source article.
