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California leads lawsuit to block Paramount Warner Bros mega merger
California and eleven US states filed a lawsuit to block the $110bn Paramount-Warner Bros merger, arguing the deal would reduce competition in film distribution and cable TV, giving four studios control of 86% of major releases and enabling higher prices for consumers. The DOJ had approved the deal in June, but the state coalition seeks a judicial review and temporary restraining order.
The Wire takeaway
If you sell into movie theaters or cable networks, your leverage just became the battleground in a $110bn lawsuit. States are arguing that losing Paramount as an alternative studio buyer will force you to accept worse terms - which means this deal's fate determines your negotiating power for the next decade.
Read the full story at bbc.com →
Topics: antitrust · media-ma · distribution-power · content-consolidation · regulatory-risk