12 states sue to stop David Ellison’s takeover of Warner Bros.

A group of 12 states led by Democratic attorneys general sued to block Paramount Skydance’s $110 billion deal to buy Warner Bros. Discovery, the sharpest challenge to one of the biggest media and entertainment mergers in history. The purchase would combine some of the biggest names in film, television, streaming and news, including CNN. Warner Bros. shareholders and the U.S. Justice Department have already blessed the deal, but opponents are hopeful that opposition from states or overseas could still upend it. The lawsuit, whose plaintiffs include California Attorney General Rob Bonta and New York Attorney General Letitia James, was filed in federal district court in Northern California on Monday. The states allege that the deal violates federal antitrust law, specifically Section 7 of the Clayton Antitrust Act, which prohibits mergers that reduce competition and create monopolies. Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon and Washington joined California and New York in the lawsuit.