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States Prepare Lawsuit to Block Paramount's Merger With Warner Bros.
State attorneys general are moving to block the $111 billion Paramount and Warner Bros. Discovery merger, citing concerns over film industry competition.
What: A group of states plans to file an antitrust lawsuit this week against the $111 billion merger between Paramount and Warner Bros. Discovery. The deal includes a breakup fee requiring Paramount to pay $650 million quarterly to Warner Bros. Discovery if the acquisition does not close by the third quarter of 2026.
Why it matters: The intervention signals a heightened regulatory appetite for blocking consolidation in media and entertainment, specifically targeting control over high-budget 'tentpole' film production.
Original article
Several states are preparing to file a lawsuit to block Paramount's acquisition of Warner Bros. Discovery as soon as this week. The lawsuit claims that the $111 billion deal would harm competition in the market for tentpole films. Paramount says it is prepared to address legitimate antitrust issues and that the merger raises no such concerns. The companies plan to close the deal in the third quarter of this year. Paramount will pay Warner Bros. Discovery's shareholders about $650 million in cash for each quarter the deal doesn't close starting in October.
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