Critics Look to States To Block Paramount-Warner Bros. Deal After Justice Department’s Approval

Paramount Skydance’s long-running legal battle to acquire Warner Bros. Discovery now moves to California and a handful of like-minded states from Washington, D.C., following Friday’s federal approval of the merger by the Justice Department’s Antitrust Division.In a statement to news outlets, a Paramount spokesman hailed the approval, saying the $111 billion deal would enhance competition and result in “a stronger company better positioned to compete” in a rapidly changing entertainment industry. The approval came without any requirements for divestitures, behavioral remedies, or concessions, Politico reported quoting unnamed persons close to the decision.But California, New York, and up to eight other mostly blue states are reported to be preparing a possible anti-trust suit to block the deal, citing concerns that combining two of the industry’s largest employers would reduce job opportunities for writers, actors, directors, and technical crew.A spokesman in the office of California’s attorney general, Rob Bonta, confirmed late Friday that the merger “remains under investigation by the California Department of Justice,” Politico reported.If the deal goes through, the merged company would command between an estimated 25 percent and 30 percent of the American movie industry and exercise control over a large share of cable and broadcast television, including CBS, CNN, HBO, TBS, TNT, MTV, Nickelodeon, and The CW.Of particular concern to many liberals is the prospect that left-leaning CNN would come under the control of the Ellison family, which controls Paramount and has close ties with President Trump. Larry Ellison, father of the Paramount CEO, is reported to have identified at least two CNN reporters who have been targeted for dismissal.In announcing its decision Friday, the Justice Department said that after an eight-month review, the Antitrust Division had determined “that the transaction is not likely to result in harm to competition or American consumers” and could even increase it.The department said its career staff had reviewed “over two million documents from over 80 custodians, substantial productions of data, as well as extensive documents, data, and advocacy from third parties across the media and entertainment ecosystem.”Analysts assessed the potential impact on streaming video, linear television, and film production in making their decision, the department said. “While taking seriously the potential impact of the proposed transaction on the creative community and domestic labor groups, the substantial evidence does not suggest a likelihood of reduction in output,” it added. “That is because the demand for creative workers and labor is correlated with the Parties’ incentives to maintain or expand output. Thus, the expressed labor concerns do not raise actionable antitrust concerns.”That conclusion was of little comfort to the Democracy Defenders Fund, a grassroots coalition of Hollywood unions, progressive advocacy groups, and entertainment professionals who have described the deal as “a direct threat to the film and entertainment industry, independent media and democracy in this country.”“That the DOJ, an agency filled with Trump loyalists like acting Attorney General Todd Blanche, would greenlight this merger is no surprise. The transaction will likely benefit the president by muzzling CNN, a major independent news outlet committed to reporting on and investigating this administration’s actions,” the group said in a statement late Friday.“That is why we are continuing to build momentum behind our efforts to block the merger. Our grassroots opposition movement is growing. And, according to press reports, it appears that state Attorneys General will heed our calls to bring suit and protect American consumers, small businesses, and the working people whose livelihoods are threatened by this disastrous transaction.”

Critics Look to States To Block Paramount-Warner Bros. Deal After Justice Department’s Approval

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