‘It will negatively affect consumers’: WA joins antitrust suit against Paramount-Warner Bros. merger

Washington, along with 10 other attorneys general, is involved in an antitrust lawsuit against the proposed merger between Paramount and Warner Bros.

Jake Skorheim and Spike O’Neill, co-hosts of “The Jake and Spike Show” on KIRO Newsradio, debated whether a lawsuit would even have been proposed if the deal had included other parties, and what Washington’s desire to join is.

“It’s a weird story because you’re talking about two of the largest entertainment companies in the world, forming and making a super entertainment company,” Spike said. “Now, Paramount is owned by the Ellisons, the father and son, and they’re trying to merge with Warner Bros. They say they need this because they have to compete with streaming services like Apple or Netflix, and the 11 attorneys general say it’s going to diminish competition, lower salaries for employees, and raise costs for the consumers.”

Jake wondered why Washington chose to jump aboard the coalition, as the state hasn’t had much of a film industry in years past.

“Here’s a question I have for you, Spike: Why is Washington joining this antitrust lawsuit?” Jake asked. “California, New Mexico, Georgia, these are all states that have infinitely more interest in production, and Washington has basically nothing. Why is Washington joining?”

“There have been numerous reports that Washington wants to reinvest in its film industry, and there are tax incentives being put forth,” Spike said. “They think it’s going to affect consumers and Washington. That’s why AG Brown is involved. He thinks it will negatively affect Washington consumers because there will be less competition among producers of entertainment. We’re talking about what you and I have to pay for services.”

Jake argues the suit is more about politics than competition, WA consumers

Jake pointed to a political divide that he believes spearheaded the lawsuit, suggesting the coalition’s motives may be personal.

“I think the reason they’re doing this is that they don’t like the Ellisons,” Jake said. “That’s the reason they’re doing it.”

“Well, they’re doing this because they think it provides an unfair monopoly and advantage over the industry,” Spike responded.

“The same thing could be argued if Warner Bros. and Netflix had successfully merged, which they were trying to do,” Jake said. “The Ellisons swooped in and said, ‘That’s not even the best deal on the table. We have a better deal for the shareholders, and so we want to buy Warner Bros. If that Netflix and Warner Bros. deal had gone through, I would hazard a guess that these blue states suing for antitrust, I don’t think they would have opposed that deal.”

Spike added context to Jake’s beliefs, noting that the Ellisons are closely aligned with President Trump, and questioned whether he is pushing the deal through because of the relationship.

“Here’s the deal: the Ellisons are heavy contributors to Trump. In fact, Ellison is an advisor to Trump,” Spike said. “So, is the president putting his thumb on the scale to approve this merger? Is the Department of Justice not bringing antitrust objections to this when they should?”

Watch the full discussion in the video above.

Listen to “The Jake and Spike Show” weekdays from noon to 3 p.m. on KIRO Newsradio 97.3