Paramount Pictures has filed a legal response to a multi-state antitrust challenge against the Warner Bros. Discovery merger, submitting arguments it plans to present at trial scheduled for March 2027. The company’s legal team contends that a coalition of 12 states lacks the regulatory authority to oversee the transaction, asserting that jurisdiction belongs exclusively to the U.S. Department of Justice, which has already approved the deal. Paramount maintains that the states’ allegations represent a weak case that will “collapse under scrutiny.”
California spearheaded the state lawsuit in July, arguing the merger would illegally concentrate the basic cable market and the theatrical release sector. Paramount counters that the states have constructed artificially narrow market definitions based on outdated data while ignoring the entertainment industry’s dramatic shift toward streaming platforms. The company emphasizes that streaming services now command larger audiences than traditional cable television and movie theaters, making the states’ analysis fundamentally disconnected from current market realities.
The merger has also drawn a separate lawsuit from the Writers Guild of America, claiming the consolidation will reduce employment opportunities for screenwriters. Both cases will be heard together at trial. A settlement conference is scheduled for late October, though this is routine in civil litigation. Paramount has requested the court require plaintiffs to post a $1.88 billion bond to continue the case, with arguments on this motion set for September 24.
Originally reported by Variety →
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