{"id":3544,"date":"2026-07-13T20:40:07","date_gmt":"2026-07-13T20:40:07","guid":{"rendered":"https:\/\/uspropertymoves.com\/?p=3544"},"modified":"2026-07-13T20:40:07","modified_gmt":"2026-07-13T20:40:07","slug":"movie-theaters-group-backs-lawsuit-to-block-paramount-merger-with-warner-bros","status":"publish","type":"post","link":"https:\/\/uspropertymoves.com\/?p=3544","title":{"rendered":"Movie Theaters\u2019 Group Backs Lawsuit to Block Paramount Merger With Warner Bros."},"content":{"rendered":"
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\n\tCinema United and other organizations that have opposed Paramount\u2019s attempted mega-merger with Warner Bros. Discovery applauded the move by 12 state attorneys general on Monday to sue to block the $111 billion deal. <\/p>\n

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\n\tCinema United, the trade organization that advocates on behalf of movie theaters across the country and internationally, took a victory lap on the challenge to a deal it vociferously opposed, arguing that small businesses across the country would suffer. \u201cThe ramifications of further movie studio consolidation will be significant and lasting, not just in Hollywood, but on Main Streets across this nation where local movie theaters serve as cultural and financial cornerstones for communities of all sizes,\u201d president and CEO Michael O\u2019Leary said in a statement. <\/p>\n

\n\tCinema United has long opposed a mega-merger of another major Hollywood entity with Warner Bros., claiming that such a transaction would concentrate too much power in the hands of a single distributor. The group is not only concerned about bargaining power, but about the diversity and number of films that would be released each year were two major distributors to merge. (Paramount Skydance CEO Ellison has promised to release at least 30 films theatrically a year across Paramount and Warner Bros. Discovery, which he says will operate as studios independently, if the merger is consummated.)<\/p>\n

\n\tCinema United\u2019s take is especially salient given that, in their lawsuit, the state regulators argued that the theatrical market, in particular, would be harmed by a reduction in owners of wide-release, high-grossing films. They claimed that the mega-deal would raise prices for consumers, reduce the amount of projects in theaters and throttle the diversity and quality of entertainment.<\/p>\n

\n\tAlong with California, attorneys general for Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington joined the suit filed in California federal court on Monday. <\/p>\n

\n\tEqually vocal on the alleged evils of corporate consolidation in the entertainment industry has been the Writers Guild of America, the union representing film and television writers across the country. The union said on Monday that it had \u201cengaged with the offices of many State Attorneys General\u201d to argue against the merger for some time. <\/p>\n

\n\t\u201cThis is one of the worst proposed mergers we\u2019ve seen. We\u2019ve been very clear from day one that combining Warner Bros. Discovery with Paramount threatens our members and this industry, and must be blocked,\u201d Writers Guild of America West president Michele Mulroney said in a statement. <\/p>\n

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\n\tAdded her counterpart from the Writers Guild of America East, Tom Fontana, \u201cThe proposed Paramount Skydance merger with Warner Bros. Discovery would create an alarming amount of\u00a0consolidation\u00a0and contraction and cause irreparable harm to our members. People will lose their jobs, their income, their homes. The damage this deal would do to America\u2019s entertainment and news industries would be an absolute, unmitigated disaster.\u201d<\/p>\n

\n\tAhead of Monday\u2019s announcement, the American Economic Liberties Project, a nonprofit devoted to antitrust policy, had helped organize a series of town halls for industry workers opposed to the Paramount-Warner Bros. deal. Unsurprisingly, a moderator for these town halls, American Economic Liberties Project senior advisor Alvaro Bedoya, cheered on the legal challenges. <\/p>\n

\n\t\u201cThe rich guys who run Paramount can say what they want, but the people who actually work for them know that this will kill jobs and screw over the small businesses that are the lifeblood of this industry. I hope the states win and win fast, because these people need it,\u201d the former FTC commissioner said in a statement. <\/p>\n

\nIn response to Monday\u2019s lawsuit, Paramount alleged that the lawsuit would help shield tech giants like Apple and Amazon as well as the dominant streaming company, Netflix, from competition and that a blocked transaction would result in consequences for entertainment workers and consumers. <\/p>\n

\n\tBut the merger\u2019s opponents aren\u2019t convinced. New York mayor Zohran Mamdani got in the action on Monday, posting on the social platform X that he was \u201cproud\u201d that New York is one of the states participating in the suit. He added, \u201cNew York\u2019s workers helped build this industry. They should not be sacrificed for the sake of further corporate consolidation.\u201d<\/p>\n

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Organizations opposing Paramount\u2019s mega-merger with Warner Bros. 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