American states prepare action to block Paramount's purchase of Warner Bros

Illustrative photo shows logos of Paramount and Warner Bros
Reuters
A group of US states, including California and New York, are preparing legal action to block the acquisition of Warner Bros. by Paramount Skydance (PSKY.O) for US$110 billion (R$563 billion, at current prices), sources informed about the matter told Reuters this Friday (5).
The legal action is expected to be filed in the coming weeks, the sources said. The case would represent the boldest move yet by states in their efforts to be at the forefront of U.S. antitrust enforcement, as their better-resourced counterparts in the Trump administration take a more business-friendly stance toward enforcement.
Analysts also think Paramount will have an easier path to gaining approval from federal antitrust regulators in the U.S., in part due to its political connections. The father of Paramount CEO David Ellison, billionaire Larry Ellison, co-founder of Oracle, has connections with President Donald Trump.
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Warner Bros shares fell after Reuters released the news, and registered a drop of 3.6% on Friday afternoon. Paramount shares extended losses, falling 6.7%.
A Paramount spokesperson said the deal would bring greater competition and that opposing it "means giving established companies like Netflix an advantage they don't deserve." process. A spokesman for the California Attorney General's office, Rob Bonta, said the state investigation remains ongoing but declined to comment further.
The proposed transaction has faced resistance from actors, screenwriters and other Hollywood professionals due to its potential to eliminate jobs. Hollywood and Wall Street have been closely watching the high-stakes deal, which would bring together some of the entertainment industry's most enduring franchises.

Source: G1