Paramount subscribers have filed a lawsuit following the approval of a merger.
As AFROTECH™ previously reported, Warner Bros. Discovery was exploring a merger with either Paramount Skydance or Netflix. Paramount emerged as the primary contender, with Netflix later dropping its bid. In April, Warner Bros. Discovery shareholders approved a merger agreement with Paramount, which requires certification from the company’s independent inspector of elections and will be filed with the U.S. Securities and Exchange Commission. The deal is valued at $110 billion.
“We appreciate the support and confidence our stockholders have placed in us to unlock the full value of our world-class entertainment portfolio,” said Samuel A. Di Piazza Jr., chair of the Warner Bros. Discovery Board of Directors, in the press release. “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.”
David Zaslav, president and CEO of Warner Bros. Discovery, commented:
“Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders. We will continue to work with Paramount to complete the remaining steps in this process that will create a leading, next-generation media and entertainment company.”
Paramount subscribers do not share that optimism. According to The Hollywood Reporter, they filed a lawsuit in a California federal court alleging that the approved merger would hinder competition in streaming, news, and theatrical distribution and would violate antitrust laws. The desired outcome of the lawsuit is for the court to block the merger and reverse Skydance’s acquisition of Paramount.
Skydance Media and Paramount Global previously completed their $8 billion merger in 2025, according to The Associated Press.
Paramount subscribers, in a lawsuit filed Thursday, April 30, in California federal court, allege Paramount would be encouraged to “raise prices, reduce output, narrow slates, reduce quality and worsen consumer-facing terms, including through control of distribution, exclusivity, windowing and licensing,” the complaint states, according to The Hollywood Reporter. The complaint argues that the merger would give Paramount control of roughly 24% of the theatrical distribution market, positioning it as the industry’s largest distributor.
“Skydance’s nontrivial acquisition of Paramount Global and the proposed nontrivial acquisition of Warner Bros. Discovery reflect the same strategy of refusing to compete by building better products, investing, innovating, or winning customers through rivalry on the merits, but instead pursuing scale through consolidation that eliminates independent rivals and weakens the competitive constraints that protect consumers,” the complaint read, per The Hollywood Reporter.
If the court order is successful, it would block the merger and require the unwinding of Skydance’s acquisition of Paramount.
Paramount said the lawsuit is “without merit.” It further added, “The combination of Paramount and WBD will create a stronger competitor that is well positioned to serve as a champion for creative talent and consumer choice,” according to The Hollywood Reporter.
