States Sue to Block Paramount-Warner Bros Merger, Defying DOJ (variety.com) 23
A coalition of 12 states led by California is suing to block the $111 billion Paramount Skydance-Warner Bros. merger, arguing it would reduce competition in theatrical distribution, blockbuster films, and basic cable licensing. The challenge (PDF) defies the DOJ's approval of the deal. Variety reports: The coalition, led by California Attorney General Rob Bonta, alleges that the $111 billion transaction violates the Clayton Act by lessening competition in three distinct markets: wide-release theatrical distribution, "top-grossing" theatrical distribution, and basic cable licensing. "The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.," Bonta said in a statement on Monday.
The suit argues that the combined company will control 27% of the wide-release theatrical distribution market, 30% of the submarket comprising "anticipated blockbuster films," and 27% of the basic cable bundle. The states argue that such consolidation will harm theaters and cable and satellite providers that rely on competition among distributors. Paramount and Warner Bros. are two of the five remaining legacy studios. Together, all five -- including Disney, Sony and Universal -- control 86% of theatrical distribution and 90% of blockbuster distribution, the states said. Warner Bros. and Paramount are also the second- and third-largest basic cable distributors, respectively.
[...] The states are expected to seek an injunction to block the transaction, which Paramount expects to close sometime after July 22. The 12 states in the coalition are Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. [...] All are represented by Democratic attorneys general. "Consolidation here not only leads to higher prices -- it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences," Bonta said. "In this country, no one is above the law. With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy."
The suit argues that the combined company will control 27% of the wide-release theatrical distribution market, 30% of the submarket comprising "anticipated blockbuster films," and 27% of the basic cable bundle. The states argue that such consolidation will harm theaters and cable and satellite providers that rely on competition among distributors. Paramount and Warner Bros. are two of the five remaining legacy studios. Together, all five -- including Disney, Sony and Universal -- control 86% of theatrical distribution and 90% of blockbuster distribution, the states said. Warner Bros. and Paramount are also the second- and third-largest basic cable distributors, respectively.
[...] The states are expected to seek an injunction to block the transaction, which Paramount expects to close sometime after July 22. The 12 states in the coalition are Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. [...] All are represented by Democratic attorneys general. "Consolidation here not only leads to higher prices -- it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences," Bonta said. "In this country, no one is above the law. With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy."
Let it burn (Score:3)
I can only see this as a good thing, similar to what Microsoft did to the gaming industry: buy up a bunch of studios, do nothing with them for years, then fire everyone. Basically a money burning party. All those developers are now free to work for independent studios and do something new.
Are blockbuster films and basic cable really things worth preserving?
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"Are blockbuster films and basic cable really things worth preserving?"
No.
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"Are blockbuster films and basic cable really things worth preserving?"
No.
I'd say it depends on what takes its place.
The non-Fox-News viewpoints of CNN seem to me to be worth preserving. And it's doubtful they would be if Paramount takes over Warner's portfolio, which includes CNN.
Look at what happened to CBS, in particular 60 Minutes, when the Ellisons' Skydance Media took over. One of the most venerable investigative-journalism shows in history has been run into the gutter.
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1. Blockbuster films help fund other films and a lot of people like them enough to have them make money or crash and burn a ton of cash... They shouldn't succeed simply because they have a 30% marketing budget which is ridiculous because of the film's pile of money.
Yes, it makes bland stuff to appeal to the lowest common denominator and they don't have to run their business on massive bets; perhaps if people were not such gullible consumers?? FX doesn't draw people in as much...
Also, those expensive films
Re: Let it burn (Score:2)
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And be beholden to the algorithm (with hidden controls). No thanks, I think I'd rather have at least some transparency.
What about Netflix? (Score:2)
The same characters were up in arms over Netflix buying WB.
Re:What about Netflix? (Score:5, Informative)
At this point they see Netflix as the way lesser of 2 evils.
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What about Netflix? Leaving aside the fact that Paramount is obviously worse than Netflix - the former is a giant empire that owns studios, cable and broadcast TV stations, news outlets, and so on, while the latter owns a single streaming service that commissions third parties to make content for it, there's no evidence that these people would be in favor of Netflix owning WB either.
But if they were in favor, it'd be understandable. Netflix is definitely the lesser evil here, even without getting into what
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Do you have any non-propaganda, unbiased evidence whatsoever that consolidating into fewer companies will in any way result in greater production of creative works?
Because if not, perhaps you should consider the possibility that the statement you quoted isn't actually propaganda (it's just a statement of fact).
sometimes I (Score:1)
Sometimes I wonder if this is all a grand conspiracy to destroy federalism and make us 50 nifty little states..
I hope so
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Sometimes I wonder if this is all a grand conspiracy to destroy federalism and make us 50 nifty little states..
I hope so
If we shatter, I think it'll be a lot more than 50 separate entities. Because there are a lot of states where there's a HARSH divide between urban/rural, or even different regions not strictly on a city/country divide. Our government and our press have done such an amazing job of dividing us over the last forty-plus years that it's going to be near impossible to bring us back together. But if we shatter, it's gonna be a HELL of a mess. I don't look forward to the waves of repercussion it will cause us durin
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Now all of a sudden you don't like states rights?
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Sometimes I wonder if this is all a grand conspiracy to destroy federalism and make us 50 nifty little states..
I hope so
And Brexit worked splendidly for Britain, right?
Right...?
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Actually, I think the federal government has accumulated too much control. I blame the direct election of Senators, but I'm not sure that's totally fair.
X/Tesla (Score:2)
Let's see (Score:2)
That's a "No" to Netflix. And a "No" to Paramount.
The only bidder left appears to be Ow! My balls!
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I'll make an offer right now to buy it for $1,000 with the intent to release the entire catalog into the public domain (CC0) 28 years after its creation.
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I'm sure the shareholders will be lining up in droves to accept your offer of 1/25000 of a cent per share.
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I'm sure the shareholders will be lining up in droves to accept your offer of 1/25000 of a cent per share.
In all seriousness, though, if bankruptcy is a real possibility, the idea of a public buyout of some of these old companies isn't a terrible one. Maybe even have the government buy it and make it free for U.S. citizens, but continue to make money on the property abroad. :-)
HBO is now HBO + showtime and priceing will go up (Score:2)
HBO is now HBO + showtime and priceing will go up as take the cost of both and add it together.