Judge Dismisses Lawsuit From Paramount Streaming Subscribers

A federal judge has dismissed a lawsuit filed by consumers challenging the proposed $111 billion merger between Paramount and Warner Bros.

Judge Araceli Martínez-Olguín determined that the plaintiffs, consisting of three current Paramount+ subscribers and two potential subscribers, lacked standing in their legal action. She also noted that they did not demonstrate a “cognizable” economic impact that would trigger antitrust laws. However, she has permitted the plaintiffs to amend and resubmit their complaint.

“The Complaint contains a boilerplate assertion of competitive harms, such as ‘lower quality and variety’ and ‘decreased consumer choice,’ but it fails to allege any facts to plausibly show how those claimed harms have materialized or would materialize,” she explained. She further stated, “Plaintiffs’ standing theory amounts to little more than the assertion that they are consumers who watch television and go to the movies, and therefore a merger between Entertainment companies would injure them.”

Judge Martínez-Olguín is also set to oversee antitrust cases brought by 12 state attorneys general and the Writers Guild of America, both of which argue that the Paramount-Warner Bros. merger would cause irreparable damage to the entertainment industry. These cases are scheduled for trial on March 2, 2027.

David Ellison, CEO of Paramount-Skydance, recently expressed his views in an op-ed for The New York Times. He suggested that the opposition from state attorneys general to the merger is not about corporate consolidation but concerns over his potential control of CNN if he acquires Warner Bros. Given Ellison’s connections to President Donald Trump, a longtime critic of CNN, and recent challenges faced by “60 Minutes,” there is unease in Hollywood about the future of the renowned news network.

“I believe this fight is not really about market share,” Ellison wrote. “I believe a plainer worry sits beneath the briefs and the news releases: the news. The issue is whether I can be trusted as a steward of Warner’s CNN.” Reaffirming his aim for an independent CNN, Ellison added, “When it comes to our news operations, I do not aspire to lead these companies to bend their newsrooms to my views. I believe that news should be based on facts and truth.”