The Justice Department’s Antitrust Division approved the Paramount-Warner Brothers merger in June. However, the merger must still survive a lawsuit brought by 12 state attorneys general, led by California Attorney General Rob Bona. The attorneys are arguing that the $110 billion merger would increase concentration in the film industry by reducing the number of major film studios to four (Disney, Sony, Universal, and Paramount-Warner Brothers). The state attorneys general also argue that if Warner Brothers is allowed to merge with Paramount the resulting company will control 59% of the basic cable market.
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