A group of streaming subscribers are suing Paramount Skydance in a bid to block its $110 billion acquisition of Warner Bros. Discovery, according to court papers obtained Friday.
The suit alleges the Paramount-Warner merger would result in higher prices, less choice for consumers and reduced production of film and TV due to the elimination of a major content producer.
The suit, filed Thursday in U.S. District Court in the Northern District of California, further contends the Paramount-Skydance merger caused prices for the Paramount+ streaming service to increase.
Other recent media mergers include the Walt Disney Company’s 2019 acquisition of much of 21st Century Fox, and Amazon’s purchase of MGM in 2021.
“These acquisitions show an industry moving by successive combinations toward fewer independent rivals, exactly the consolidation backdrop that heightens the competitive threat posed by the next merger, even if the combined firm remains smaller than the largest platforms,” the lawsuit states.
The proposed deal would unite two major media companies under one corporate structure with broad control over film and television production and distribution.
The merger has generated opposition from critics citing anti-trust concerns and fearing job losses in an industry still recovering from the COVID-19 pandemic and labor strife.
Earlier this month, more than 1,000 actors, filmmakers and other industry professionals, including Joaquin Phoenix, Ben Stiller, Rosie O’Donnell and Noah Wyle, issued an open letter opposing the deal, warning it could reduce competition and harm the entertainment industry.
The suit seeks an injunction blocking the Warner Bros. deal and attempts to force Skydance to divest itself of Paramount, which it acquired last year.
The merger will still need federal regulatory approval.
A Paramount spokesperson did not immediately respond to a request for comment.