As New Jersey joins a multi-state coalition to stop the merger between Paramount Skydance and Warner Bros. Discovery, local Democratic officials are asking the state to drop the lawsuit.
It highlights a rare, intra-party disconnect. Attorney General Davenport, appointed by Democratic Governor Mikie Sherrill, is suing Paramount, along with 11 other Democratic Attorneys General, while Hudson County Democrats are urging her to stop, citing revenue, jobs, and more in jeopardy.
Both sides of the fight come from the same party. Both sides argue they are protecting New Jerseyans. Yet, they’ve reached opposite conclusions.
The Lawsuit
On July 13, AG Davenport joined a coalition of 12 Attorneys General from across the country suing to block Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery.
The lawsuit is simple—it argues that the merger violates Section 7 of the Clayton Act. In layman’s terms: it violates antitrust laws.
They argue that the restructured company would combine for a 27% share of the wide-release theatrical film market. Following the merger, only three companies would control 75% of distributions within the space. Additionally, Paramount would control 30% of expected blockbuster releases. The AGs argue that this would create the risk of a monopoly.
In a statement released by Davenport’s office, she put it plainly: “New Jersey is the birthplace of the American film industry… We will always stand up against corporate monopolists that seek to exploit hardworking New Jerseyans.”
The merger, she argues, will end competition between the studios, and threaten pricing, variety, and quality of output as a result.
The Other Side
Hudson County elected representatives published an op-ed in New Jersey Globe urging Davenport to drop the lawsuit.
New Jersey—and Hudson County specifically—has spent years actively courting major studios to build a homegrown film industry within the state. One of those is 1888 Studios in Bayonne, a long-term production campus from Paramount.
The project plans for 1.1 million square feet of permanent soundstages and post-production facilities, and is expected to generate within the ballpark of $1.2 billion in capital expenditures. Paramount already has a strong presence in New Jersey—6,000 jobs, four active productions, and $400 million in investment. Six additional productions, including 1,500 jobs and $200 million in investment, are planned over the next 12 months.
Billions more in production spending is forecast over the next decade, which the officials argue is now “in jeopardy.”
“New Jersey has spent years building a film and television industry capable of competing with New York, California, Georgia, and production centers around the world including the U.K., attracting transformational investments from Netflix and Lionsgate,” they stated. “Paramount has become a critical participant in that effort and has committed to establishing a substantial, long-term production presence in Bayonne.”
The representatives go on to call 1888 Studios “the most consequential economic development opportunity Hudson County has seen in half a century,” framing the potential loss of the project as a missed economic opportunity for their communities. It’s worth noting that the lawsuit does not end 1888 Studios, but, as Hudson County Democrats put it, “could materially impair the very investment.”
Officials argue they aren’t just fighting for a share of the industry, but “reclaiming” New Jersey’s history “as the birthplace of American filmmaking,” a nearly identical argument to that of Davenport’s—with an opposite conclusion.
The published op-ed is signed by 11 elected officials: Bayonne Mayor Sharon Ashe-Nadowski; Hudson County Executive Craig Guy; State Senators Raj Mukherji, Brian Stack, and Angela McKnight; and Assembly members Jerry Walker, William Sampson, Ravi Bhalla, Katie Brennan, Larry Wainstein, and Gabriel Rodriguez.
Where the Governor Stands
Governor Mikie Sherrill’s stance is a bit less direct.
In a statement obtained by Fox News Digital, she said, “We are excited to welcome Paramount to Hudson County because film is in New Jersey’s DNA — we’re Hollywood East and the only state where film shoots are up this year. New Jersey is open for film business, so we are going to keep building, keep filming, and keep making it easier for companies like Paramount to create good-paying jobs and lay down roots in the Garden State.”
Notably, Sherrill did not comment on the lawsuit itself.
A Developing Feud
As New Jersey continues to establish itself as a major hub within American filmmaking, recent news has created a rare intra-party clash between NJ officials.
Attorney General Jennifer Davenport joins a multi-state lawsuit seeking to block Paramount Skydance’s acquisition of Warner Bros. Discovery, citing a violation of antitrust laws and the risk of a monopoly.
On the other side, Hudson County Democrats have come to the opposite conclusion, arguing that the lawsuit threatens years of political good will between New Jersey and film studios that has the potential to inject billions of dollars into the local economy.
But the dispute also comes with a timer. Starting October 1, the merger agreement adds a penalty of roughly $7 million per day in additional costs for every day the closing is delayed. Paramount has also asked the court to require the states bringing the lawsuit to post nearly $1.88 billion in security against the losses it claims the case has caused.
Whether that additional motion succeeds is anyone’s guess. But as the deadline approaches, New Jersey Democrats are pulling in two directions at once. One side fighting to block the deal, the other hoping it goes through.
Peter Candia is the Food + Drink Editor at New Jersey Digest. A graduate of The Culinary Institute of America, Peter found a passion for writing midway through school and never looked back. He is a former line cook, server and bartender at top-rated restaurants in the tri-state area. In addition to food, Peter enjoys politics, music, sports and anything New Jersey.
