Paramount files new legal statement saying states' antitrust suit misses the whole point of the merger
The studio is arguing that the goal of the $111 billion merger is to make the combined Paramount competitive with Netflix and Amazon, not rival studios.
Paramount has filed a new legal statement in its attempt to block a merger between Warner Bros. and Discovery, arguing that the states' antitrust lawsuit is misguided. The company's lawyers claim that the states' case is based on an outdated view of Hollywood, where major studios like Paramount and Warner Bros. were direct competitors.
However, they argue that tech-driven companies like Netflix, Apple, and Amazon have disrupted the market over the past two decades, and the only way for traditional Hollywood to compete is through a merger. This approach is illustrated by the metaphorical mention of a hypothetical Netflix theatrical movie featuring Taika Waititi as an ex-con Willy Wonka.
In response to the states' claims, Paramount also counters the Department of Justice's approval of the merger, stating that the states are within their rights to litigate the issue. Paramount cites the agreement of the three major theater chains to support the merger, believing that the proposed merged entity, referred to as "Paramount Bros.," will maintain a steady stream of big-budget films.
The legal filing also highlights that Cinema United, the trade organization representing the theater chains, has requested a settlement in the case, although it is not an endorsement of the merger itself. As negotiations progress, both sides appear set on their positions, with the potential for an upcoming Netflix film featuring Waititi adding a new dimension to the dispute.
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