New lawsuit aims to keep HBO Max, Paramount+ separate
New lawsuit aims to keep HBO Max, Paramount+ separate
Consumers have brought a new suit against Skydance to keep the company from combining assets after the closure of its Warner Bros. Discovery merger.
The legal team at Skydance has already scored several major victories this year. Thanks to its its efforts, Paramount was able to absorb Warner Bros. Discovery and all of its assets, forming the new Skydance Corporation with a huge stable of cable channels, streaming services, and two movie studios. But Skydance’s lawyers will have to head back to court soon, as a new lawsuit has been brought by a group of consumers who want to stop the combination of HBO Max and Paramount+.
Key Details:
- We say no: Skydance has been sued to stop the combination of WBD and Paramount assets.
- Out of the bottle: The lawsuit is not aiming to unwind the merger itself.
- That’s the plan: Skydance intends to merge Paramount+ and HBO Max after a period of bundling.
The new court challenge against Skydance has been brought by a group of consumers — Pamela Faust, Len Marazzo, Lisa McCarthy, Deborah Rubinsohn, and Gary Talewsky. The group is seeking a hearing in front of U.S. District Judge Araceli Martínez-Olguín to hear their antitrust complaint against Skydance.
The group is not trying to unwind the merger of Paramount and WBD, which it acknowledges as settled. But in their suit, they ask the court to stop the combination of HBO Max and Paramount+, as well as other assets now under the control of the combined Skydance.
“Plaintiffs request an order requiring Defendants Paramount Skydance Corporation and Skydance Media, LLC to hold and operate separately, pending final adjudication or further order, the acquired Warner Bros. Discovery businesses and assets necessary to preserve viable independent HBO Max and Paramount+ services, together with identifiable associated film and national-news operations, so the Court may order effective divestiture if Plaintiffs prevail,” the preliminary injunction request reads.
Skydance CEO David Ellison has clarified his intention to merge HBO Max and Paramount+ after a period of bundling, during which the streamers will remain separate but be available at a combined price. He has offered no further details on that plan, but more could be available when Skydance reports its third-quarter earnings in early November.
If the plaintiffs win a preliminary injunction against the combination of Paramount and WBD assets, it could cost the company. Analysts do not expect the suit to pose any significant hindrance to Skydance’s eventual ability to combine its streamers into a single platform, but any delay or public pushback could still harm the company. Skydance shares are already slumping, as investors worry about the company’s $80 billion debt load and its pledges to release 30 films annually now that it has completed the merger.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr., and more. Get free access with a Walmart+ subscription.
Paramount+ includes “1883,” “Tulsa King,” “Star Trek: Discovery,” “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa League, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.