Paramount subscribers file lawsuit against Warner Bros merger
A handful of Paramount subscribers have filed a lawsuit in an attempt to block the platform’s seemingly imminent acquisition of Warner Bros Discovery.
The mega-deal between Warner Bros and Paramount has faced much criticism recently, from the likes of New York mayor Zohran Mamdani, as well as 1000 Hollywood names, including Glenn Close and Joaquin Phoenix, who retaliated against the move in an open letter.
Turns out the people are opposed to the merger, too. As per The Hollywood Reporter, a lawsuit was filed in California federal court, alleging the acquisition will “substantially reduce competition in streaming, news, and theatrical distribution in violation of antitrust laws.”
The complaint adds that the deal will consolidate “Paramount’s ability and incentive to raise prices, reduce output, narrow slates, reduce quality, and worsen consumer-facing terms, including through control of distribution, exclusivity, windowing, and licensing.”
The suit also alleges the merger, finalised last year, has led to higher prices for the Paramount+ streaming service.
Should the deal go through, the mega-company would have a huge monopoly in the industry and would likely dwarf other production companies. Notably, Netflix was first in the running, but Paramount Skydance outbid Netflix for a $110.9bn deal in February.
However, Paramount Skydance are still hopeful that the merger will go through, deeming the new lawsuit “without merit”.
It added, “The combination of Paramount and WBD will create a stronger competitor that is well positioned to serve as a champion for creative talent and consumer choice.”
In response to other backlash, Paramount CEO David Ellison has promised to release at least 30 movies a year theatrically with a minimum 45-day theatrical window.
However, the open letter against the move, including signatories like Emma Thompson, Denis Villeneuve, and Mark Ruffalo, warned that “The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.”
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