In a piece for The American Prospect, David Dayen reports that a group of states sued to block the $110 billion merger between Paramount and Warner Bros. These states argue that the merger, approved last month by the federal government, will lead to lower revenues for theater owners and cable distributors and higher prices for moviegoers and cable subscribers. The combined company would consolidate Hollywood into four major studios controlling 85 percent of wide-release films. The company would have a 27 percent market share of box office revenue and a 27 percent market share of basic cable. “One out of every four dollars in basic cable and theatrical releases would flow to this merged company,” writes Dayen.
DAVID DAYEN; [email protected]
Dayen is the executive editor of The American Prospect.
Dayen told the Institute for Public Accuracy: “The 12 state attorneys general have put together a strong case that exemplifies what happens when companies merge: their leverage in the market grows, and their business partners, workers and consumers lose out. Paramount is less trying to fight on the merits than trying to intimidate the AGs and game the system. I don’t think they will succeed.”