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Paramount Skydance sharply criticized a coalition of 12 Democratic state attorneys general that sued to block the David Ellison-led company’s takeover of Warner Bros. Discovery.
The lawsuit filed by the state AGs “distorts
settled antitrust law and is based on a misrepresentation of competition in the entertainment industry today,” Paramount said Monday, after the suit was filed. It said it will “vigorously defend the transaction.”
The company repeated its claims that the $111 billion deal to merge Paramount and Warner Bros. “creates a stronger competitor against dominant streaming and technology platforms who have harmed the market for theatrical exhibition and jobs in the entertainment industry.”
“The lawsuit filed by the state attorneys general, in the most generous light, reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law,” Paramount’s statement said. “Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs.”
The company’s statement continued: ““The practical effect of this lawsuit is to shield those dominant streaming platforms like Netflix and technology companies from much-needed competition while preventing the significant benefits this transaction will deliver for consumers, creators, workers and the broader Hollywood economy. We will continue to fight against any attempt to derail a deal that strengthens competition, expands opportunity, and positions the combined company to compete in an increasingly competitive global media landscape.”
Paramount says its takeover of WBD has been cleared by regulators in 24 jurisdictions. That includes a green light from the U.S. Justice Department, which did not impose any requirements for divestitures or other concessions on the part of Paramount Skydance. The deal is still pending regulatory approval in the U.K., where officials have said they are likely to intervene.
