The shareholders might be loving the idea of Paramount’s bid on Warner Bros. Discovery, but subscribers are not. On April 30, Paramount subscribers filed a lawsuit in California federal court against the studio in an attempt to both block the merger and undo aspects of Skydance’s acquisition from 2024. The suit represents three current Paramount+ subscribers and two “prospective” subscribers (presumably waiting to see how Survivor 50 wraps up before biting the bullet), all of whom feel that this merger, when taken in context of the Amazon-MGM deal and the Fox-Disney deal, makes the streaming wars way less competitive.
,,Is this the first lawsuit that’s come up in the merger?
,Somewhat surprisingly, yes. Or, at least, it’s the first lawsuit that’s solely about the merger. Back in March, a Vegas gambler named R.J. Cipriani sued Jeff Shell, the president of Paramount, and Larry and David Ellison, who are behind Skydance, for unpaid “consulting” services and commissioning a Hollywood Reporter article that he alleges saved Paramount $1.5 billion. How generous!
,So if Paramount can get through this, it’s smooth sailing from here?
,Not exactly. The Writers Guild of America and International Brotherhood of Teamsters both have made statements expressing their skepticism over the merger. (There has been no statement from SAG, the DGA, or the PGA — yet.) And then, of course, the federal government will have to approve the merger to ensure it doesn’t actually break antitrust laws. While David Ellison and Donald Trump are reportedly buddies, this thing could get punted to 2027, in which midterms might have a serious effect on the deal.
,What else does the lawsuit say?
,“Plaintiffs allege that if Paramount’s proposed acquisition of Warner Bros. Discovery is consummated, the combined firm will reduce theatrical film output and narrow release slates, leaving moviegoers with fewer theatrical titles, less genre and budget variety, and fewer meaningful alternatives at local theaters,” the suit claims. Wait — I literally didn’t know you could sue because the options at the theater are so bad. How do I get in on this?
,Is Paramount taking this seriously?
,Ha. The company said the suit is “without merit.” It would say something like that.
,,Related
