AZ AG Kris Mayes sues to block Paramount - Warner Bros. merger
AZ joins massive Paramount-Warner Bros. lawsuit
A coalition of 12 states, including Arizona, is challenging a deal that would merge Paramount with Warner Brothers. FOX 10's Andrew Christensen reports.
PHOENIX - Paramount is offering $110 billion to acquire Warner Bros., but Arizona Attorney General Kris Mayes is one of 12 attorneys general challenging the merger.
What we know:
12 attorneys general, including Mayes, are asking Warner Brothers and Paramount to not close the merger until after the judicial process is done, and if they do not, they will be filing a temporary restraining order.
However, the federal government has already approved the merger.
"We're going to put up a fight," Mayes said. "We're going to do everything we can to protect the consumers of this state".
What Mayes Said:
Mayes says the potential Paramount-Warner Brothers merger would combine two of Hollywood's five major film distributors and basic cable companies, controlling one-third of those industries.
The legal challenge seeks to "try to make sure that our antitrust laws against this kind of corporate greed and consolidation are used to stop it," Mayes said.
Mayes says the market has already experienced fewer movies coming out as a result of Disney buying 20th Century FOX in 2019. She said consolidation leads to "fewer mid-budget films, fewer original releases, and growing dependence on a smaller and smaller number of blockbusters.".
Mayes also said having fewer films produced has a trickle-down effect on movie theaters.
"Theaters don't have the same opportunities to attract audiences, build consistent schedules, and maintain stable revenue," Mayes said.
The other side:
Paramount officials, meanwhile, say the merger would help them compete with companies like Netflix.
"Put simply, any attempt to block this transaction undermines the very principles antitrust law is designed to promote: more competition, more choice for consumers, and more opportunities for creators and workers," Paramount stated.
As mentioned earlier, the federal government has already approved the merger. The approval by the U.S. Justice Department happened in June.
"These investigative efforts all led to the same conclusion: the film and television industry is highly dynamic, and the proposed transaction is not likely to harm competition or American consumers," the Department of Justice stated.
Mayes criticized the decision by the federal government.
"It's stunning to see the federal government and the DOJ, when faced with the facts, turn a blind eye," Mayes said.
What's next:
The companies have hoped to close the merger in the third quarter of this year, which means that could be the next few weeks, but this lawsuit could prevent that from happening.
The Source: Information in this report was gathered from Arizona Attorney General Kris Mayes, official statements from Paramount, and official statements from the Department of Justice.