Lawsuit Filed Against Paramount and Warner Bros. Merger
The Hollywood Reporter
Cinema United and other organizations opposing the massive merger that Paramount is attempting to execute with Warner Bros. Discovery welcomed the decision of 12 state attorneys general to file a lawsuit to block the $111 billion deal. This lawsuit is backed by claims that small businesses will suffer, and Cinema United argues that this merger will have negative effects not only beyond Hollywood but also in communities where local cinemas are culturally and financially significant.
Michael O’Leary, CEO of Cinema United, stated, "The consequences of further mergers among major film studios will be significant and lasting." The organization has long opposed the merger of Warner Bros. with another major Hollywood entity, believing that such a transaction would concentrate too much power in a single distributor. They are also concerned that if two major distributors merge, it will lead to a decrease in the diversity and number of films released each year.
The content of the lawsuit suggests that the reduction in the number of owners of high-grossing films that are widely released will negatively impact the cinema market. State regulators claim that this mega deal will raise consumer prices, reduce the number of projects in theaters, and threaten the diversity and quality of entertainment.
In addition to California, the attorneys general of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington also joined the lawsuit. Another group raising its voice against the negative impacts of corporate mergers in the entertainment industry is the Writers Guild, which represents film and television writers across the country. The guild stated that they have long been in discussions with various state attorneys general against the merger.