Twelve states sue to block Paramount's $110 billion Warner Bros. merger

Key facts

• Twelve state attorneys general filed a lawsuit to block Paramount's $110 billion acquisition of Warner Bros. Discovery.
• California Attorney General Rob Bonta led the coalition of 12 states with Democratic attorneys general.
• The suit was filed in the U.S. District Court for the Northern District of California.
• The lawsuit alleges the merger violates Section 7 of the Clayton Act.
• The complaint identifies three markets where competition would be harmed: wide-release film distribution, anticipated blockbuster film distribution, and licensing of basic cable channels.
• The combined company would control nearly one-third of wide-release theatrical films and basic cable programming.
• Post-merger, the new entity and Disney would control about 60% of anticipated top-grossing films.
• Paramount called the lawsuit 'wrong on both the facts and the law.'
• The attorneys general are prepared to seek a temporary restraining order if the companies do not voluntarily delay closing.
• The U.S. Department of Justice let the deal pass last month without conditions.
• The European Union is reviewing the deal with a provisional deadline of July 22.
• If the merger is not completed by September, Paramount owes a penalty of approximately $650 million per 90-day period.