Iowa Attorney General Brenna Bird announced plans to escalate her opposition to California’s legal challenge against the proposed Paramount-Warner Bros. merger by taking the dispute to the U.S. Supreme Court. Bird outlined her position in an op-ed, arguing that California has overstepped its authority in attempting to block the deal and that conflicts between states over regulatory matters fall under the Supreme Court’s jurisdiction.
Bird contends that the merger would benefit consumers and the entertainment industry. She argues that combining Paramount+ and HBO Max would create a more competitive streaming platform capable of challenging market leaders like Netflix and Disney. According to Bird, the combined company could save an estimated $6 billion and commit to releasing at least 30 theatrical films annually, potentially lowering subscription costs and providing more entertainment options for viewers.
The Iowa attorney general also emphasized the potential damage caused by regulatory uncertainty. She pointed out that both companies face operational paralysis, unable to make long-term commitments or investments while the merger’s fate remains unclear. Bird warned that films may never be produced and employees cannot plan their careers during this period of limbo, citing Paramount’s $7 million monthly ticking fee as an additional burden.
The legal battle continues as California Attorney General Rob Bonta leads a coalition of 12 state attorneys general opposing the merger. Recent settlement discussions between the parties broke down after Bonta accused Paramount of leaking confidential information about negotiations.
Originally reported by Variety →
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