<\/p>\n
A group of five consumers have filed a lawsuit against Paramount Skydance seeking to block its acquisition of Warner Bros. Discovery and to unwind the earlier merger that joined the storied Melrose Ave. studio with David Ellison\u2019s Skydance Media, alleging that both deals reduce marketplace competition.<\/p>\n
The lawsuit, filed Thursday in U.S. District Court in the Northern District of California, alleges the Paramount-Warner deal will lead to increased prices, fewer consumer choices and reduce production of film and TV since a major rival in the entertainment business will be eliminated.<\/p>\n
The suit also alleges that the Paramount-Skydance merger, which was finalized last year<\/a>, led to higher prices for the Paramount+ streaming service.<\/p>\n The plaintiffs \u2014 Pamela Faust, Len Marazzo, Lisa McCarthy, Deborah Rubinsohn and Gary Talewsky \u2014 are either Paramount+ subscribers, pay for cable bundles that include Paramount-owned TV channels or are moviegoers who watch films in theaters.<\/p>\n The deal activity for Paramount is part of a growing list of recent media mergers, including Walt Disney Co.\u2019s 2019 acquisition of much of 21st Century Fox<\/a> and Amazon\u2019s purchase of MGM in 2021<\/a>.<\/p>\n \u201cThese 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,\u201d the lawsuit states.<\/p>\n Paramount is aware of the lawsuit and \u201cconfident that it is without merit,\u201d a company spokesperson said.<\/p>\n \u201cThe combination of Paramount and [Warner Bros. Discovery] will create a stronger competitor that is well positioned to serve as a champion for creative talent and consumer choice,\u201d the spokesperson said in a statement. <\/p>\n