Paramount Argues States’ Antitrust Suit Will ‘Collapse Under Scrutiny’
Paramount Argues States’ Antitrust Suit Will ‘Collapse Under Scrutiny’
Sep 11, 2026 9:16pm PT
Paramount Argues States’ Antitrust Suit Will ‘Collapse Under Scrutiny’
By Gene Maddaus
Plus Icon
Gene Maddaus
Senior Media Writer
Latest
-
Court to Hold Paramount-Warner Bros. Settlement Conference in Late October 9 hours ago
-
Dan Schneider Loses ‘Quiet on Set’ Defamation Suit on Appeal 1 day ago
-
Congress Begins Drafting 20% Federal Film Incentive With Trump’s Blessing (EXCLUSIVE) 3 days ago
Getty Images
Paramount’s lawyers filed a legal response to the states’ antitrust lawsuit against the Warner Bros. Discovery merger on Friday, sketching out arguments and defenses it may use at a trial next March.
Among other defenses, Paramount’s lawyers said they may claim that the coalition of 12 states lacks the authority to regulate the merger, “which is vested in the U.S. Department of Justice.”
Related Stories
South Korean President Lee Jae Myung Calls for Human-Centric AI and Backs Independent Cinema at Lumiere Summit
Oscars: South Korea Selects Lee Chang-dong's 'Possible Love' for International Feature Race
Paramount also noted that Cinema United, the trade group for theater chains, has called for a settlement.
“Day by day, the weak case against this Merger gets even weaker,” the company argued, adding that it also plans to challenge the states’ market definitions. “Plaintiffs’ case amounts to a series of attempted shortcuts and assumptions that collapse under scrutiny.”
Popular on Variety
California led the state coalition in suing to block the merger in July, arguing that the deal will create unlawful concentration in the basic cable market and in the wide-release and blockbuster theatrical markets. The DOJ had earlier approved the merger, issuing a memo laying out its reasoning for why the deal should be allowed to go forward.
States typically work with the DOJ in antitrust cases, but under the Trump administration California and several others have often charted their own course.
Paramount has repeatedly argued that the deal will be pro-competitive, and will result in more movies and TV shows.
In its answer to the complaint, the company denied the states’ allegations — a requisite formality to establish a legal controversy. The company also added a few pages of argument, alleging that the states’ case ignores the broader context of an industry in rapid transition to streaming.
“The way audiences consume content is changing rapidly. Streaming services now have greater viewership than movie theaters and cable television,” Paramount argues. “Plaintiffs’ case depends on ignoring this reality. It involves a series of gerrymandered markets based on cherry-picked data from the past. The alleged markets are not the product of sound economic analysis or current market realities. They have been invented for one purpose and one purpose only: to trigger a presumption — any presumption, no matter how weak — in the hopes the Court will look no further.”
The Writers Guild of America has filed its own lawsuit arguing that the merger will reduce the marketplace for writers’ work. That case is set to be heard alongside the states’ challenge at trial on March 2, 2027.
Paramount has agreed not to close the deal until a ruling is issued after the trial — though it is asking the court to require the plaintiffs to post a $1.88 billion bond as the price of continuing the litigation. A judge is set to hear arguments on that request on Sept. 24.
Meanwhile, a court will hold a two-day settlement conference in the antitrust case with the parties in late October. That’s a standard part of civil procedure and does not indicate whether a deal is in the offing.
‘Godzilla Minus Zero’ Named Centerpiece of Tokyo Film Festival as ‘Sukiyaki’ Opens, ‘Colony’ Closes
Ana Vaz Discusses the Impact of the Fukushima Nuclear Disaster, the Work of Yoko Hayasuke and Preferring to Be a Mother Rather than a Zombie
Kore-eda Hirokazu’s Arashi Doc Leads Prime Video Japan Slate as Top Execs Unveil Country Strategy (EXCLUSIVE)
Utopai Studios, DeNA Team on AI-Assisted Animation Projects in Japan (EXCLUSIVE)
Tokyo Film Festival Adds Nippon Cinema Now Competition, Crosscut Asia+ Section, New Award Honoring Women in Film
Toei, Shochiku, Kadokawa Among IP Holders Set for TIFFCOM’s Tokyo Adaptation and Remake Market
Loading comments...
Leave a Reply Cancel reply
0 CommentsComments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.Leave a Reply
Your email address will not be published. Required fields are marked *
Name *
Email *
Website
Δ
More From Our Brands
- Rolling Stone\
Lil Durk Scores Major Win to Split Racketeering-Related Charges From L.A. Murder-For-Hire Trial\
\
- Robb Report\
How to Make a Strawberry Milk Punch, the Clarified Vodka Cocktail That Tastes Like Summer\
\
- Sportico\
Tiafoe-Shelton Brings Hope to American Men’s Tennis\
\
- WWD\
Nicky Hilton Rothschild Breathes New Life into Classic Silhouettes in Suit-inspired Look at Michael Kors\
\
ad
PMC
Variety is a part of PMX Global, LLC, a subsidiary of Penske Media Corporation. © 2026 Variety Media, LLC. All rights reserved. Variety and the Flying V logos are trademarks of Variety Media, LLC.
Our Sites