Paramount has announced its intention to vigorously contest a lawsuit filed by California and 11 other states that seeks to block its proposed $110 billion merger with Warner Bros. Discovery. The company asserted that the legal challenge misapplies antitrust laws and is based on flawed factual and legal reasoning.
In a statement, Paramount contended that blocking the merger would negatively impact entertainment industry workers who have already faced significant disruption and job losses due to shifts in the streaming and technology sectors. The company argued that the combined entity would be better positioned to compete against dominant streaming services like Netflix. This would be achieved through increased investment in premium content, theatrical releases, and creative talent.
Paramount also accused the state attorneys general of acting to protect established streaming rivals rather than consumers. The company suggested the lawsuit would ultimately benefit large technology firms by preventing a more formidable competitor from emerging in the media landscape.
"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," a Paramount spokesperson stated.
According to Paramount, regulators in 24 other jurisdictions have already reviewed and approved the transaction, finding no adverse competitive impacts. Warner Bros. Discovery deferred comment to Paramount and did not provide a separate statement. The lawsuit from California and other states was filed shortly after the merger received approval from the Trump administration.