By Lawrence Pacheco
Attorney General Phil Weiser yesterday issued the following statement after a federal court judge in California granted the states’ request for a temporary restraining order halting the merger of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation:
Anyone who enjoys going to the movies or watching television would be affected by an entertainment megamerger between Paramount and Warner Bros. The proposed merger would end competition between Paramount and Warner Bros., as well as harm movie theaters, basic cable distributors, and audiences nationwide. The court indicated that the states have a likelihood of succeeding in our lawsuit and blocked the merger for now. If the Justice Department won’t enforce the antitrust laws, the states will continue to step up to protect consumers and uphold the rule of law.
Last week, Attorney General Weiser joined a coalition of 12 attorneys general in filing a lawsuit challenging the unlawful merger. The proposed $110 billion merger — the largest in Hollywood history — would combine two of Hollywood’s five major film distributors and two of the five major owners of basic cable channels,
The lawsuit alleges that the merger violates Section 7 of the Clayton Act, which holds that mergers that may substantially lessen competition or tend to create a monopoly are illegal. The attorneys general allege that, if Warner Bros. and Paramount are allowed to merge, it would lessen competition in three markets: film distribution, anticipated blockbuster film distribution, and licensing cable TV channels.
The temporary restraining order halts the merger while the court considers a ruling on a preliminary injunction, which would block the merger for the duration of the litigation.
Lawrence Pacheco is Chief Communications Officer with the Colorado Attorney General’s Office.