What to KnowTwelve states were part of a lawsuit filed to prevent the $110 billion proposed acquisition of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation.The lawsuit cites antitrust concerns over combining the two film studios and their streaming platforms and claims the proposal vio lates part of the Clayton Act.California Attorney General Rob Bonta said the merger would “lead to higher prices, lower quality, and less content for film and television.”Skydance-owned Paramount said the lawsuit “distorts settled antitrust law and is based on a misrepresentation of competition in the entertainment industry today.”In June, the U.S. Justice Department signed off on the merger and said the transaction is “not likely” to result in harm to competition or consumers.”The proposal has faced criticism from some industry professionals, including  actors, directors and writers, and elected officials in California and Los Angeles.The two companies have said they hoped to close the deal in the third quarter of this year. California is one of a dozen states that are part of a lawsuit filed Monday challenging the acquisition of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation. The lawsuit filed in Northern California aims to block the $110 billion proposed merger of two storied studios whose Hollywood history spans more than a century. Media Apr 23 Warner Bros. shareholders approve Paramount's $81 billion takeover of the Hollywood giant Hollywood Apr 13 Hollywood stars sign open letter protesting the Paramount-Warner Bros. merger Warner Bros. Discovery became a takeover target in a battle between Netflix and Skydance-owned Paramount. Paramount was victorious in the end, and is edging closer to closing the buyout of Warner’s entire company. The lawsuit cites antitrust concerns over combining the two film studios and their streaming platforms. The merger would bring TV Paramount’s broadcast network CBS and pay TV channels like MTV and BET with WBD’s CNN, TNT and others under one roof. The lawsuit claims the proposed merger violates part of the Clayton Act, which deals with mergers that may substantially lessen competition and create a monopoly. In a statement, California Attorney General Rob Bonta said the merger would “lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.” The state attorney general, who is running for re-election in November, made the announcement at a location in the Hollywood area with a view of the Hollywood sign and Mount Lee in the background. In a statement, Skydance-owned Paramount said the 12-state lawsuit “distorts settled antitrust law and is based on a misrepresentation of competition in the entertainment industry today.” The company said the merger would create a “stronger competitor against dominant streaming and technology platforms who have harmed the market for theatrical exhibition and jobs in the entertainment industry.” David Ellison, CEO of Paramount Skydance, has said the merger would honor the legacy of both companies while creating a next-generation media and entertainment business. Ellison is the son of Oracle co-founder Larry Ellison. Warner Bros. shareholders approved the proposed merger in April. In June, the U.S. Justice Department signed off on the merger and said the transaction is “not likely” to result in harm to competition or consumers.” The proposal has faced criticism from some industry professionals, including  actors, directors and writers, and elected officials in California and Los Angeles. More than 1,000 industry professionals signed an open letter in opposition to the merger. Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington are part of the lawsuit. The lawsuit comes as the proposed transaction remains under review in the European Union and United Kingdom. China, Canada and Australia are among countries that already granted some regulatory clearances, according to Paramount. The two companies have said they hoped to close the deal in the third quarter of this year. ...read more read less