Arizona is one of 12 states filing an antitrust lawsuit to block Paramount’s purchase of Warner Bros. Discovery.
California is leading the lawsuit, filed Monday in the U.S. District Court for the Northern District of California, but the other states involved argue that the effects of the acquisition will be felt far beyond Hollywood.
“For every dollar that is spent at a movie theater, an estimated $1.50 is spent at nearby businesses including restaurants, retail stores, or on transportation,” Arizona Attorney General Kris Mayes said in a press conference Monday.
Mayes and the other state attorneys general in the case argue the deal to consolidate the major media companies would illegally reduce competition, giving the combined companies a 27% share of the film market.
Mayes said the $110 billion deal would harm movie theaters, cable distributors and audiences.
“When fewer films are available, theaters may be forced to raise ticket prices to remain viable, and Arizona consumers bear those costs,” Mayes said.
The lawsuit from the 12 states comes after the U.S. Justice Department last month said it would not challenge the merger.
Paramount has said it is prepared to defend the transaction in court.
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