States Sue to Block Paramount-WBD Merger

California and eleven other states filed an antitrust lawsuit to block Paramount's $110 billion acquisition of Warner Bros.

Discovery, arguing the merger would harm competition in film distribution and cable television and lead to price increases for consumers.

The legal challenge came as Paramount CEO David Ellison was simultaneously on Capitol Hill meeting with House members to promote a federal film tax incentive.

Warner Bros.

Discovery CEO David Zaslav also came under scrutiny after filing to sell nearly $60 million in company stock hours after the lawsuit was announced.

The coordinated legal action from blue states represents a significant obstacle to what would be one of the largest media consolidations in history.