Paramount Skydance acquisition of WBD on hold as 12 states take legal action

A federal judge of the United States has placed the $110 billion acquisition of Warner Bros. Discovery by the newly merged Paramount Skydance Corporation on a temporary pause after attorney generals from 12 states take legal action in an attempt to block the takeover from going ahead.

The suing states, all of which are run by Democrats, allege illegal activities and malpractice during the course of the process. One of the suing states is Washington (not to be confused with Washington D.C.). Nick Brown, the state attorney general, said the number of constituents reaching out with concerns came as a shock. Meanwhile the state attorney general of New Jersey, Jennifer Davenport, says: “We just knew that it was bad for New Jerseyans. This is more important than ever that we fight for the competition in the industry, because we are seeing it as just another component of rising costs in our state.”

The resulting mega-corporation would seek to become global media empire. However, critics are concerned that the takeover would result in less choice and, crucially, less competition, therefore shrinking the market. Those with knowledge of the subject have also suggested that, even if the case rules against PSD, they could try to prolong the deal to make it harder and more costly to fight in court. Federal judges had until today (22nd July) to make a ruling on the case.

Paramount has threatened to leave California, home of Hollywood, should the case rule in favour of the state. The proposed acquisition is also having implications outside the US. In Poland, an activist group has warned that the acquisition could potentially jeopardise the editorial independence of TVN. TVN is Poland's second largest commercial network, and has been owned by WBD since 2018.