{"id":4345,"date":"2026-07-16T20:06:36","date_gmt":"2026-07-16T20:06:36","guid":{"rendered":"https:\/\/relocationobserver.com\/?p=4345"},"modified":"2026-07-16T20:06:36","modified_gmt":"2026-07-16T20:06:36","slug":"paramount-slams-states-lawsuit-over-warner-bros-merger-as-one-of-the-weakest-in-modern-history","status":"publish","type":"post","link":"https:\/\/relocationobserver.com\/?p=4345","title":{"rendered":"Paramount Slams States\u2019 Lawsuit Over Warner Bros. Merger as \u2018One of the Weakest\u2019 in Modern History"},"content":{"rendered":"<div>\n<div>\n<!-- do not apply CSS styles to this element! --><\/p>\n<div>\n<p>\n\tParamount Skydance began to lay out its legal argument Thursday against an antitrust lawsuit brought by a dozen states, calling it \u201cone of the weakest merger challenges in modern antitrust history.\u201d<\/p>\n<p>Read more <a href=\"https:\/\/relocationobserver.com\/?p=4344\">Kris Jenner\u2019s Mom MJ Dies at 91: \u2018I Will Forever See Pieces of You in All of Us\u2019<\/a><\/p>\n<p>\n\tParamount\u2019s lawyers  to the states\u2019 motion for a temporary restraining order, which would pause the $111 billion merger with Warner Bros. Discovery. In it, Paramount argued that the states\u2019 claim that the merger will harm competition is contradicted by the \u201creal-world economics\u201d of the film business.<\/p>\n<p>\n\t\u201cLow barriers to expansion by existing competitors \u2014 including Universal, Disney, Amazon MGM, Sony, Lionsgate, A24, and NEON \u2014 make Plaintiffs\u2019 concentration figures irrelevant and ensure that competition will remain vigorous,\u201d Paramount\u2019s lawyers wrote. \u201cThe real-world economics of film<br \/>distribution and the merger\u2019s economic incentives demonstrate that the transaction will increase, not<br \/>decrease, theatrical motion picture output and will not adversely affect the price terms to theaters.\u201d<\/p>\n<p>\n\tLed by California Attorney General Rob Bonta, a 12-state coalition  on Monday, arguing that the Warner Bros. merger will harm theaters and cable distributors by creating unlawful market concentration. The suit claims that the merged entity will hold 30% of the market for blockbuster film distribution, and that four companies \u2014 including Disney, Universal and Sony \u2014 will control 93% of that market.<\/p>\n<p>\n\tIn its opposition, Paramount cited another company \u2014 Amazon MGM Studios \u2014 and the massive success of its \u201cProject Hail Mary\u201d this year. Paramount argued that Amazon MGM, or other distributors like A24 or Lionsgate, could increase production levels if Paramount cut its output, undercutting any pricing power that Paramount might have over theater chains.<\/p>\n<p>\n\tParamount has previously expressed its opposition to the lawsuit, but this the first time it has spelled out its arguments in court.<\/p>\n<p>Read more <a href=\"https:\/\/relocationobserver.com\/?p=4342\">UFC\u2019s McGregor-Holloway Fight Averages 6.5 Million Viewers Across U.S. and Latin America<\/a><\/p>\n<p>\n\tThe states have also argued that Paramount and Warner Bros. Discovery are two of the three largest owners of basic cable channels, and that the combined entity will have unfair leverage over cable and satellite TV providers. In response, Paramount argued that the Paramount and WBD cable lineups are complementary \u2014 and not market substitutes \u2014 and that cable providers will still want access to all of the channels.<\/p>\n<p>\n\tParamount also argued that cord-cutting is eroding the leverage of all cable channel owners.<\/p>\n<p>\n\t\u201cIn this environment, every programmer\u2019s bargaining position is diminishing because the underlying asset (pay television subscribers) on which affiliate fees are calculated is eroding annually,\u201d the company argued.<\/p>\n<p>\n\tA hearing on the motion for a temporary injunction is set for 10 a.m. Friday before Judge Araceli Martinez-Olguin. <\/p>\n<p>Read more <a href=\"https:\/\/relocationobserver.com\/?p=4340\">Santa Monica\u2019s Beach Will Rock With Olivia Dean, the Killers, Jack White and Khruangbin, as Goldenvoice Sets First Ocean Way Festival for September<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Paramount filed its opposition to the states&#8217; request for a temporary restraining order to pause the Warner Bros. merger.<\/p>\n","protected":false},"author":1,"featured_media":4209,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[3253],"class_list":["post-4345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-film","tag-paramount-warner-bros"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Paramount Slams States\u2019 Lawsuit Over Warner Bros. 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