States sue to block Paramount-Warner Brothers Discovery merger

California and 11 other states filed a lawsuit Monday in Oakland federal court to block Paramount's $110 billion acquisition of Warner Bros. Discovery, alleging the merger would reduce competition and allow the combined company to raise prices for consumers, harm movie theaters and cable distributors, and reduce content quality. The states simultaneously sought a preliminary injunction to halt the merger while litigation proceeds. The deal is central to Paramount CEO David Ellison's strategy to create a streaming and entertainment rival to Netflix and Disney.