States Settle Paramount-Warner Bros. Discovery Suit
Twelve states led by California settle their antitrust suit over Paramount Skydance's $111 billion Warner Bros. Discovery merger, as advocacy groups urge a judge to reject the deal.
Twelve states led by California have settled their antitrust lawsuit seeking to block Paramount Skydance's $111 billion merger with Warner Bros. Discovery, California Attorney General Rob Bonta announced earlier this week. The other suing states signed on to the agreement.
The states had sued in July, alleging the merger would permanently eliminate competition over the films and television programming Americans can watch. US District Judge Araceli Martínez-Olguín ruled that the merger would likely reduce competition substantially and violate antitrust laws.
Free speech and media advocacy groups filed a court filing yesterday urging the judge to reject the settlement. The filing was submitted by the Committee for the First Amendment, Free Press, Freedom of the Press Foundation, Future Film Coalition, and International Documentary Association, according to arstechnica.com.
The groups said the settlement gives residents of the suing states virtually nothing. Bonta previously said merger conditions such as a pledge to release 30 movies a year are typically not enforceable and not particularly good at solving the problem.
The League of United Latin American Citizens filed its own court filing raising similar concerns.
Quick answers
What is the Paramount Skydance and Warner Bros. Discovery merger?
It is a $111 billion merger that twelve states led by California sued to block in July, alleging it would permanently eliminate competition over films and television programming Americans can watch.
What did the judge rule on the merger?
US District Judge Araceli Martínez-Olguín ruled that the merger would likely reduce competition substantially and violate antitrust laws.
Why are advocacy groups opposing the settlement?
Groups including the Committee for the First Amendment, Free Press, Freedom of the Press Foundation, Future Film Coalition, and International Documentary Association said the settlement gives residents of the suing states virtually nothing.