US states ready to sue over Paramount-Warner $110B deal

A coalition of U.S. states is preparing to file an antitrust lawsuit as soon as next week to block Paramount's proposed $110 billion acquisition of Warner Bros. Discovery, according to sources familiar with the matter. The legal challenge, led by California Attorney General Rob Bonta, threatens to delay or derail a merger that would combine two of Hollywood's four major film studios.

The potential lawsuit represents a significant escalation of scrutiny over the deal, which has already received clearance from the U.S. Department of Justice. State attorneys general, however, retain the authority to bring their own antitrust claims. Officials from multiple states have been investigating the transaction for months, with California's office taking a leading role in examining whether the merger would unlawfully harm competition.

The deal has drawn widespread criticism from within the entertainment industry. Actors, writers, and other industry professionals have expressed fears that the consolidation could lead to job losses. Theater owners have also voiced strong opposition, arguing that combining Warner Bros., the studio behind franchises like Harry Potter and Superman, with...