Crandall Melivn Professor of Law Shubha Ghosh spoke with several news outlets on the State AG’s lawsuit to block the Paramount-Warner Bros. takeover.
At Variety, Ghosh said, “I’m not 100% sure this will be successful.” Generally, he said, courts have been deferential in allowing mergers across the board to proceed. In addition, a judge might find that the AGs’ case too narrowly defines the markets in question. A court’s analysis might consider factors like streaming and AI, and how they play into the competitive dynamics in the industry. Distribution of entertainment content “isn’t limited to just movie theaters or basic cable.” Ghosh said it’s also on YouTube and other streaming platforms. “The courts could push back and say there’s still competition from that.”
At the LA Times, Ghosh spoke to the state’s case that it bypasses streaming in its market definition. “It’s not uncommon to try to define the market as narrowly as possible,” said Ghosh. “But courts have been a bit more sensitive to this issue, and sometimes judges question whether [plaintiffs] have the right definition of the market,” Ghosh said.
Speaking with The National News, Ghosh noted that, “It all depends upon how well Paramount and Warner make their case for how the market is functioning. I do think there are other platforms other than theatre [and] theatrical distribution.”