Paramount Skydance CEO David Ellison may think the promise of a Paramount-Warner Bros. Discovery mega-merger is an offer he can’t refuse, but I’m here to tell you that he’s wrong.
I am leading a coalition of 12 state attorneys general to take Paramount and Warner Bros. to court to stop this illegal merger.
The entertainment industry doesn’t just exist to promote movies and TV shows like any other product. It exists to tell stories, spark ideas and curiosity, inspire and inform, and open our eyes to new perspectives we would never have encountered otherwise.
That’s why, as we’ve seen throughout the World Cup, movies and TV shows often take center stage in our lives: first and last dates, cherished family memories, discussions over dinner, quiet moments of self-care, and moments that bring communities together.
There’s no question that the entertainment industry touches Americans’ lives every day, whether it’s on the TV in their living room, on the big screen, or on the small devices they carry with them everywhere they go.
That’s why we should all be concerned about the proposed $110 billion merger between media giants Paramount Skydance and Warner Bros.
By combining two of the five largest film distributors and two of the five largest basic cable channels, the resulting media giant will control nearly one-third of theatrical film distribution and nearly one-third of basic cable channels. This will result in control of more than 30% of the distribution of the blockbuster movies that power the movie theater business, as well as 50 of the most popular cable TV channels covering unparalleled content in news, sports, entertainment, kids, family, facts and lifestyle.
Giving so much power to one media company would eliminate competition, drive up prices, reduce the quality of content offered, and put fewer movies and shows on our screens. Consolidating cable news channels would mean fewer journalists informing voters and less opportunity for Americans to hear a wide range of information and opinions on a subject. Consolidation means fewer voices speaking truth to power and fewer documentarians, filmmakers, showrunners, producers, writers, and artists shining a light on important stories that aren’t often told.
This is the death knell for the film and television industry and our democracy.
For more than a century, Paramount and Warner Bros.’ fierce competition has produced powerful projects that stand the test of time. We’re talking about “Titanic,” “The Godfather,” “The Matrix,” “Barbie,” “Harry Potter,” “Lord of the Rings,” and “Casablanca,” just to name a few.
If we allow them to extinguish the flames of competition, they won’t have the same incentive to deliver their best and most creative work, to innovate, to greenlight interesting and risky projects, and to offer fair prices to viewers.
Competition is the heartbeat of a vibrant entertainment industry, just as it is the lifeblood of a healthy economy.
Competition allows companies to rise to the top based on what they bring to market, rather than based on backroom deals. Consumers also have a wide range of choices in both product and price. History has shown that the integration of markets at the center of American economic life does not benefit the economy, consumers, or competition. Instead, it increases unaffordability, eliminates good-paying employment opportunities, and reduces consumer choice. Think of the Gilded Age robber lords who controlled the oil, railroad, and steel industries, exploiting workers, corrupting political institutions, and reaping ill-gotten gains while crushing potential rivals.
Monopolies give too little power. Therefore, antitrust laws are in place to prevent mergers and regulate mergers. This proposed merger violates laws such as the Clayton Act. Antitrust enforcement is a check on oligarchy through democracy. This is a check on wealthy companies that take advantage of the system to cheat and beat the competition. This is a check on the billionaires who favor the president, who does their bidding and seeks to cherry-pick winners and losers, bypassing the laws and meritocracy that make the economy flourish. And it curtails a small elite who think they are above the law, when in fact they are not.
No one is. There is no such company.
If you want proof that antitrust enforcement promotes a healthy economy, look no further than California. We have the strongest antitrust and consumer protections and are not afraid to uphold these protections. And at the same time, we are the fourth largest economy in the world, home to more Fortune 500 companies than any other state, and attract nearly two-thirds of all venture capital investments in the United States. That’s no coincidence.
Americans deserve fair prices and fair markets. They need choices. They need to know they are not being fooled by companies that break the law and take advantage of workers and consumers to pad their coffers.
We’re suing Paramount and Warner Bros. to protect an industry that has the power to make us laugh, cry, question and take action. To protect the industries that help shape who we are, how we see the world, and what we care about.
As Attorney General of the Golden State, I am proud to represent an industry that is deeply rooted in California’s history, identity, and economy.
With this lawsuit, we are standing up for free and fair markets, not rigged markets. Because America has no king in government or economy.
Rob Bonta is California’s attorney general.
