California is one of a dozen states that are part of a lawsuit filed Monday challenging the acquisition of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation.
The lawsuit filed in Northern California aims to block the $110 billion proposed merger of two storied studios whose Hollywood history spans more than a century.
Warner Bros. Discovery became a takeover target in a battle between Netflix and Skydance-owned Paramount. Paramount was victorious in the end, and is edging closer to closing buyout of Warner’s entire company.
The lawsuit cites antitrust concerns over combining the two film studios and their streaming platforms. The merger would bring TV Paramount’s broadcast network CBS and pay TV channels like MTV and BET with WBD’s CNN, TNT and others under one roof.
The lawsuit claims the proposed merger violates part of the Clayton Act, which deals with mergers that may substantially lessen competition and create a monopoly.
In a statement, Bonta said the merger would “lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”
David Ellison, CEO of Paramount Skydance, has said the merger would honor the legacy of both companies while creating a next-generation media and entertainment business. Ellison is the son of Oracle co-founder Larry Ellison.
Warner Bros. shareholders approved the proposed merger in April. In June, the U.S. Justice Department signed off on the merger and said the transaction is “not likely” to result in harm to competition or consumers.
The proposal has faced criticism from some industry professionals, including actors, directors and writers, and elected officials in California and Los Angeles. More than 1,000 industry professionals signed an open letter in opposition to the merger.
Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington are part of the lawsuit.