12 states sue to block Paramount's $110B Warner Bros Discovery acquisition.

Attorneys general from 12 states, led by California Attorney General Rob Bonta, claim that the merger would harm competition in the movie industry and result in lower pay and fewer job opportunities for industry professionals.

The states argue that the merger would hurt consumers by driving up cable package and movie ticket prices and offering fewer news and entertainment choices. If the merger goes through, the combined company would control 27% of the nation’s basic cable TV licensing and 75% of wide-release theatrical film distribution. Bonta’s office said that without competition, the merger could increase costs for consumers.

Paramount did not comment on the action, but the company has previously said that any lawsuit would be politically motivated. Critics of the deal have said Paramount’s political connections helped clear the path for approval from U.S. regulators last month. Paramount Skydance did not immediately respond to a request for comment.

The lawsuit threatens to derail Paramount CEO David Ellison’s bid to transform his company into a major rival to Netflix and Disney. The states have asked Paramount to delay closing the deal until legal proceedings conclude. "If they do not agree, the coalition will be filing a temporary restraining order," Bonta’s office said.

The coalition of states has requested that the two companies halt the merger until the case concludes. Paramount CEO David Ellison’s father, billionaire Oracle co-founder Larry Ellison, has cultivated ties with Republican President Donald Trump. The states said that if the Ellison-led media giant does not comply, they will seek a court order requiring it to do so.