A federal judge has dismissed a lawsuit filed by streaming subscribers seeking to block the $111 billion merger between Paramount and Warner Bros. Judge Araceli Martínez-Olguín ruled that the plaintiffs—comprising three current Paramount+ subscribers and two prospective customers—lacked sufficient legal standing to pursue the case. The judge determined they failed to demonstrate concrete economic harm that would warrant antitrust intervention.
In her ruling, Judge Martínez-Olguín stated that the plaintiffs’ complaint relied on generic assertions about potential harms such as reduced quality and limited consumer choice without providing specific evidence of how these injuries would materialize. She characterized their argument as merely claiming they consume entertainment products and therefore would be affected by any merger between major media companies.
Despite dismissing the current case, the judge permitted the plaintiffs to file a revised complaint. Meanwhile, separate antitrust litigation continues, with cases brought by 12 state attorneys general and the Writers Guild of America scheduled for trial in March 2027. Both groups contend the merger would cause significant damage to the entertainment industry.
Paramount-Skydance CEO David Ellison recently addressed concerns about the deal, arguing that opposition stems from anxieties about his potential control of CNN rather than legitimate competition worries. Ellison reiterated his commitment to maintaining editorial independence at the news organization.
Originally reported by Variety →
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