Lawyers for several states are finalizing an antitrust lawsuit challenging Paramount’s pending acquisition of Warner Bros. Discovery, according to people involved in the legal process.
Merger Details
The multistate suit will likely be filed next week, though the filing date is subject to change. If the suit is filed, it could disrupt Paramount’s plan to take control of Warner later this summer.
The Justice Department cleared Paramount’s acquisition of WBD last month amid criticism of the Trump administration’s close ties with the company. Federal clearance doesn’t bar state attorneys from bringing their own antitrust claims.
Critics have argued that the deal would harm competition across the entertainment and news industries, a charge Paramount has denied. State-level officials have been probing Paramount’s lobbying of the Trump administration, among other matters.
A Paramount spokesperson said, “We continue to engage constructively with regulators, including State Attorneys General, and are prepared to address any legitimate antitrust issues. We are confident this transaction raises no such concerns.”
Regulatory Hurdles
Paramount is also facing regulatory hurdles in the United Kingdom, where culture minister Lisa Nandy recently said she was “minded to intervene” in the deal.
In the United States, a coalition of state attorneys general has been investigating the deal for months, and California Attorney General Rob Bonta has repeatedly expressed concerns about the proposed combination.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
