Arizona joins antitrust lawsuit in attempt to block Paramount-Warner merger

Arizona joined a 12-state coalition in an antitrust lawsuit opposing the blockbuster merger of entertainment heavyweights Paramount and Warner Bros. Discovery.

The complaint was filed Monday in U.S. District Court for the District of Northern California. It claims that Paramount Skydance Corp.’s proposed $110 billion acquisition of Warner Bros. Discovery violates the Clayton Antitrust Act of 1914.

If allowed, the merger would put HBO Max, “Harry Potter” and CNN under the same roof as CBS, “Top Gun” and the Paramount+ streaming service.

The deal would lead to a Hollywood giant that controls nearly one-third of movie releases and basic cable, according to the Arizona Attorney General’s Office.

“Arizonans could face higher prices to see new movies and to access basic cable channels. It could also lead to job losses at movie theaters across our state,” Attorney General Kris Mayes said in a statement. “Consolidation in industry after industry will only lead us in one direction: higher prices and degraded quality and service for Arizonans. We cannot let that happen.”

California Attorney General’s Office leads antitrust case

The California Attorney General’s Office, which is leading the case, said the states are asking Warner and Paramount to hold off on closing their merger until the judicial process is concluded. The coalition plans to seek a temporary restraining order if the companies do not agree.

“The unlawful merger of these two entertainment behemoths 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.,” California Attorney General Rob Bonta said in a statement.

California and Arizona are joined by Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington in the lawsuit.

Justice Department cleared Paramount-Warner merger

The Paramount-Warner transaction came together after months of what became a very public bidding war with Netflix. Shareholders approved it in April.

The U.S. Justice Department isn’t challenging the deal and, in fact, released a lengthy statement supporting it last month. The statement said a Paramount-Warner combo would “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”

The Associated Press contributed to this report.

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