Image source, Getty Images Image caption, Warner Bros is headquartered in Burbank, California. By Francisco Velasquez Business reporter Published 13 July 2026 Updated 4 hours ago A dozen US states have joined together to block the $110bn ( 85bn) merger between Warner Bros. and Paramount, claiming the largest media consolidation in Hollywood history would stifle competition and raise consumer prices. A lawsuit has been filed by 12 states, led by California, where Paramount and Warner Bros keep their headquarters and production studios. California Attorney General Rob Bonta claimed the merger would end up harming "audiences on every sofa and movie theater seat in the US". If it goes ahead, the new company would account for over a quarter of major film releases. Together with Disney, Universal, and Sony, just four conglomerates would control 86% percent of that market. US news website Semafor reported , external that David Ellison, the controlling owner and chief executive of Paramount Skydance and son of tech billionaire Larry Ellison, has been urged by advisers to move the company's operations out of California. Paramount has been based in the state for more than 100 years. Bonta told BBC World Service that he was aware of the report, adding: "I heard that as an explicit statement". "I'll even say it felt like a threat last night, and it felt like a last-ditch effort to blackmail the regulators into allowing an illegal deal to go through," Bonta said. "It didn't work. It won't work. It doesn't work." The BBC has contacted Paramount for comment on whether it is considering shifting the company out of the state. Combining Paramount and Warner Bros would end a century of fierce rivalry between two of Hollywood's biggest hitmakers. Between them, they own legendary franchises like Harry Potter, Batman, Mission: Impossible, and Top Gun , alongside TV giants like CNN, MTV, and Nickelodeon. The regulatory challenge marks a significant hurdle for the entertainment giants as they attempt to merge operations. In June, the US Department of Justice had approved the merger. But the coalition of attorney generals has requested that the companies halt the transaction pending judicial review, threatening a temporary restraining order if they do not comply. If approved, the combined titan would control nearly a third of the US theatrical motion picture market and basic cable programming. Bonta claimed it "would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the US". The legal challenge focuses on three main areas: major cinema releases, massive blockbusters, and cable TV channels. The states argue that losing this competition strips movie theaters and television networks of vital bargaining power. At present, if one studio demands unfair prices, a distributor can walk away and deal with the rival. Without that option, the lawsuit argues that theaters and TV networks will face higher fees costs that will eventually hit consumers through pricier tickets, high cable...
🔥 EXCLUSIVE PARTNER OFFER
GameSir Nova Lite Switch Controller Hall Effect Gamepad for Nintendo Switch iPhone Android Mobile Phone Windows PC Steam
Special Price
🎯 Best price guarantee! Order now and enjoy fast shipping with global tracking.
Affiliate link — Commission earned at no extra cost to you
© EcoNews DZ — Global Economic & Financial News
Comments
Post a Comment