States preparing lawsuit to block Paramount’s acquisition of Warner Bros, sources say
A group of U.S. states including California and New York are preparing a lawsuit to block Paramount Skydance’s $110 billion acquisition of Warner Bros, sources familiar with the matter told Reuters on Friday.
The lawsuit is expected to be filed in the coming weeks, the sources said. The case would mark the boldest move yet by the states in their effort to be at the forefront of U.S. antitrust enforcement, as their better-funded counterpart agencies in the Trump administration take a more business-friendly view of enforcement.
Analysts have also viewed Paramount as facing an easier road to regulatory clearance from federal antitrust watchdogs in the U.S. in part because of its political connections. Paramount CEO David Ellison’s father, billionaire Oracle co-founder Larry Ellison, has cultivated ties with President Donald Trump.
Shares of Warner Bros fell after Reuters first reported the news, and were down 3.6% on Friday afternoon. Paramount shares added to losses and were down 6.7%. [Continue reading…]