Arizona Attorney General Kris Mayes on Monday joined a coalition of 12 attorneys general in filing a lawsuit challenging the $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance Corporation. The proposed merger would combine two of Hollywood's five major film distributors and two of the five major basic cable companies.
"If this merger goes through, Arizonans could face higher prices to see new movies and to access basic cable channels," said Attorney General Mayes. "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."
The coalition has asked the companies not to close the merger until after the judicial process concludes, and said it will seek a temporary restraining order if they do not agree. The lawsuit was filed in U.S. District Court for the Northern District of California and alleges the deal violates Section 7 of the Clayton Act, which bars mergers that substantially lessen competition or tend to create a monopoly.
According to the attorneys general, the combined company would control nearly one-third of theatrical motion pictures and nearly one-third of basic cable programming in the United States. Warner Bros. and Paramount are two of the five major film distributors and, after the merger, only three distributors would control about 75 percent of wide-release theatrical films.
