The acquisition of Warner Bros Discovery, which owns the Polish station TVN, is facing potential legal challenges. According to reports from Reuters, certain U.S. states opposed to the transaction may file a lawsuit next week aimed at blocking the $110 billion deal.
States including California and New York have expressed concerns that the acquisition of Warner Bros. Discovery (WBD) by Paramount could harm competition. As reported by Reuters, these states are preparing a legal challenge, with California’s Attorney General Rob Bonta leading the investigation into whether the deal violates antitrust laws. The timeline for filing the lawsuit may still change.
While not all lawsuits aimed at blocking mergers succeed, they can significantly delay the finalization of the deal if the court orders a halt until the proceedings are complete. Earlier in June, Reuters reported that a group of state attorneys general was preparing a lawsuit to block the WBD acquisition, although the legal basis for the complaint has not been disclosed.
Creative sectors in Hollywood have also protested the transaction, fearing it could lead to massive job losses and a reduction in film and television production. Furthermore, the merger raises concerns about excessive consolidation in the streaming and film production markets, alongside potential political repercussions tied to CNN’s acquisition by a company closely connected to the Ellison family and former President Donald Trump.
The transaction, which was initially expected to conclude before July 22, will not be finalized by that date. Reuters highlights that any delays could increase costs for Paramount. If the merger is not completed by October, shareholders of WBD could receive an additional 25 cents per share for each quarter the deal is delayed. Paramount Skydance agreed to buy WBD shares at $31, valuing the entire transaction at $110 billion.
