An Alternative Extinguishment

Federal District Judge Araceli Martínez-Olguín has ordered Paramount and Warner Bros. Discovery to halt their merger process for two weeks—ostensibly, the judge claimed—to give States challenging the deal more time to see their case through in court. The silliness of that order is in the claim that two whole weeks is enough time for such a complex case to wend its way. Any Federal judge worthy of his black robe is well aware of the implications of such a short time frame. This is nothing more than judicial interference in a business decision.

The States’ argument also is risible. The merger would “extinguish competition” in Hollywood and reduce choices for consumers. This can be rendered irrelevant in a straightforward manner. Paramount and WB should move their operations out of Hollywood, out of California altogether. Then there would be no concern about Hollywood at all. There also would be no reduction in consumer choice from the move.

Likely locations for the two companies include Virginia, New Mexico, Texas, and Alabama, each of which has an environment favorable to making movies and television shows. Any of those environments also would lower the costs of production, which could only enhance consumer choice by making movies and TV shows easier and faster to bring off.

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