Twelve US states have filed a lawsuit to block Paramount's attempted $110bn acquisition of Warner Bros Discovery, the parent company of CNN, alleging the move would undermine competition across film and cable TV.

The lawsuit, led by California, claims the merger would cause “substantial harm on movie theaters, basic cable distributors and, ultimately, audiences nationwide”. The combined entity would control 27% of basic cable TV licensing and 75% of wide-release theatrical film distribution.

California Attorney General Rob Bonta stated: “With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets.” He added the merger “would lead to higher prices, lower quality, and less content for film and television”.

The complaint also notes that Paramount CEO David Ellison is reportedly considering moving the studio's headquarters out of California. UK regulators may also intervene in the deal.

Paramount has committed to paying $650m in fees to Warner Bros Discovery shareholders each quarter if the deal does not close before October. The company has previously dismissed any lawsuit as politically motivated.

Washington State Attorney General Nick Brown said: “If allowed to go through, this merger would raise prices, reduce consumer choice, and cost many Americans their jobs while enriching billionaires.”

The deal has faced backlash from actors, producers, and directors. Thousands of renowned figures, including Robert De Niro, Ted Danson, and JJ Abrams, called on regulators to block the merger.

CNN staff are concerned about potential editorial shifts. Broadcast journalist Anderson Cooper reportedly said he would exit CNN if Bari Weiss were to join the network.

Source: www.aljazeera.com