A coalition of twelve states, led by California, has filed a lawsuit to block Paramount’s $81 billion acquisition of Warner Bros. Discovery. The suit claims the merger would raise prices, lower quality, and reduce content for film and television, harming movie theaters, cable distributors, and consumers across the U.S. California Attorney General Rob Bonta stated that the unlawful merger would hurt every “sofa and movie theater seat.” The case was filed Monday in a Northern California federal court. Bonta plans a press conference with the Hollywood sign backdrop to explain the coalition’s arguments. Other states in the lawsuit include New York, Colorado, New Mexico, New Jersey, Connecticut, and Nevada.

The merger would combine two of Hollywood's largest producers and distributors of entertainment and news content, creating significant antitrust concerns. The coalition argues that the deal would grant Paramount and Warner Bros. Discovery too much market power, potentially stifling competition and innovation in the media industry.

If the court permits the merger, the industry could see fewer choices for consumers and increased costs across the supply chain. The lawsuit highlights the growing tension between state regulators and large media conglomerates over market dominance and consumer protection.