Consumers file Hail Mary at SCOTUS to block Paramount-Warner merger

After state attorneys general settled their lawsuit against the controversial merger, a group of consumers pleaded with the high court to intervene to keep lawsuits against the deal alive.WASHINGTON (CN) — Five consumers filed a longshot emergency application Monday at the Supreme Court seeking to block Paramount Skydance’s $110 billion merger with Warner Bros. Discovery.The consumers asked to preserve separate ownership of the companies while their lawsuit moves forward, warning the justices that irreparable harm will occur if the deal is allowed to close on Tuesday.“Closing will not merely change a stock ledger,” the consumers wrote. “It will replace separate ownership with common control over competing studios, streaming products and news organizations and permit the integration respondents themselves describe. Once independent pricing, programming, release, newsroom, technology, employment and investment decisions are centralized, later relief cannot restore the period of competition that was lost.”Justice Elena Kagan, a Barack Obama appointee, saw no need for emergency intervention, however, denying the application only hours after it was filed.The controversial deal is set to close Tuesday, putting news networks CBS News and CNN, streaming services HBO Max and Paramount+, and film studios Warner Bros. and Paramount Pictures under one roof.David Ellison, CEO of Paramount Skydance, said the combined company will be known as Skydance. Ellison, an ally of President Donald Trump, appointed former conservative New York Times opinion writer Bari Weiss to run CBS News after acquiring Paramount, leading to a string of controversies over editorial independence.Paramount reached a deal to acquire Warner Bros. in late February, with both companies contending the merger would benefit consumers and encourage growth in the industry. However, the deal was delayed by a series of lawsuits.A coalition of 12 states led by California Attorney General Rob Bonta accused the merger of violating federal antitrust laws. But last month, the company settled with the state attorneys general, agreeing to spend at least $300 million more each year in domestic production and a yearly film quota.Under the deal, Paramount will further create a news editorial independence board to “monitor adherence to ethical journalism” at CBS News and CNN and require Paramount and Warner Bros. to negotiate their cable packages separately. The agreement will last for five years and will be overseen by an independent monitor.A California judge signed off on the agreement last week, setting the stage for the merger to finally close.Two lower courts refused to put the merger on hold again for the consumers’ lawsuit. They asked the Supreme Court to intervene on an emergency basis as a last-ditch effort.“The requested order is narrow: preserve separate ownership and prohibit integration pending disposition of the petition or further order,” the consumers wrote. “It does not decide final antitrust liability. It preserves the court’s ability to decide the legal questions before the Oct. 6 closing changes the competitive structure.”The court did not immediately respond to the application.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads