States sue to block Paramount's $111-billion Warner Bros. takeover

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Rob Bonta and 11 other Democratic state attorneys general filed a lawsuit Monday to block Paramount Skydance’s proposed $111-billion takeover of Warner Bros.Discovery — a last-ditch effort to derail a deal that would transform Hollywood.Tech scion David Ellison’s proposed merger has been hurtling toward the finish line after securing approvals from the U.S.

Justice Department and numerous foreign governments.President Trump, an ally of Ellison’s billionaire father Larry Ellison, favors the deal.

He is eager for a big shake-up at CNN, which is currently controlled by Warner Bros.David Ellison now faces his biggest challenge yet as he attempts to build a new entertainment behemoth.

A Paramount representative did not immediately comment.The suit, filed in federal court in San Francisco, alleges that the proposed merger would violate the U.S.Clayton Act, a century-old antitrust law to prevent mergers that weaken competition and increase costs for consumers.

“Consolidation here not only leads to higher prices — it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences,” Bonta said in a statement.“California and our sister states are fighting for free and fair markets, not rigged markets,” he said.California and the 11 other states, including New York, New Jersey, Washington and Colorado, allege the merger would devastate the theatrical film business by combining two historic film studio rivals.

The Ellison family would control such storied franchises as Harry Potter, Bugs Bunny, Batman, “Top Gun” and “Game of Thrones.” The proposed purchase also would unite two prominent news organizations — CNN and CBS News.The states have asked Paramou...