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[BUSINESS] · United States · 100 sources

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Paramount‑Warner Bros merger blocked by lawsuit from 12 US states

Twelve U.S. states, led by California Attorney General Rob Bonta, filed a federal antitrust lawsuit to stop Paramount's proposed $110‑111 billion acquisition of Warner Bros. Discovery. The states argue the deal would give the combined company control of roughly 27‑30 % of wide‑release theatrical distribution, blockbuster film licensing and basic cable programming, violating the Clayton Act and likely leading to higher prices, lower quality and reduced content choices for consumers, as well as harming movie theaters, cable providers and workers. Bonta said the merger would result in “higher prices, lower quality, and less content” and warned that “no one is above the law.”

The lawsuit, filed in the U.S. District Court for the Northern District of California, seeks a temporary restraining order to halt the transaction until the case is resolved. The Justice Department approved the merger in June, concluding it would not harm competition, but the states contend that their own antitrust statutes allow them to protect regional markets. Paramount has denied the claims, saying the merger will create a stronger competitor to streaming giants and pledging to produce at least 30 films a year. It also pledged a $650 million quarterly “ticking fee” if the deal is not completed by the September deadline.

Other related actions include a separate lawsuit by the Writers Guild of America and the hiring of the law firm Milbank by California and its co‑plaintiffs to provide high‑powered legal representation. The case highlights a clash between state‑level antitrust enforcement and a federal approval that was supported by the Trump administration.

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