(RTTNews) - A group of 12 attorneys general, headed by California AG Rob Bonta, has launched a lawsuit against the planned $110 billion purchase of Warner Bros. Discovery, Inc. (WBD) by Paramount Skydance Corp. (PSKY), seeking to stop the transaction.

The complaint, submitted to the U.S. District Court for the Northern District of California, claims the combination would remove rivalry between the firms and cause major damage to cinemas, basic cable providers, and viewers nationwide.

Under the proposed union, viewed as Hollywood's biggest deal ever, two of the five leading film distributors and two of the five primary basic cable owners would unite. In the United States, the resulting entity would hold close to one-third of theatrical releases and nearly one-third of basic cable content.

The filing states the merger breaches Section 7 of the Clayton Act, which prohibits combinations that may substantially reduce competition or foster a monopoly.

The attorneys general contend that allowing Warner Bros. and Paramount to combine would curb rivalry especially in wide-release film distribution, expected blockbuster theatrical releases, and the licensing of basic cable channels.

The California Attorney General's Office noted the coalition requested that Warner Bros. and Paramount delay closing the merger until court proceedings finish. Should they refuse, the group indicated it would seek a temporary restraining order.

Attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington joined the action.

In mid-June the Antitrust Division of the U.S. Department of Justice ended its review of the proposed deal, concluding it would not likely harm competition or consumers.

In February 2026 Paramount Skydance revealed a definitive agreement to buy Warner Bros. Discovery in an all-cash deal worth $81 billion in equity value and $110 billion in enterprise value, creating a leading global media and entertainment company.

Overnight, Warner Bros. shares slipped about 0.04 percent to $27.08 after rising 2 percent in Monday's regular session.

Paramount Skydance shares fell 0.5 percent overnight to $9.50 following a 1.5 percent gain in regular trading.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.