Multiple US states are preparing to sue to block Paramount's $110 billion acquisition of Warner Bros., with California and New York among those working together on the legal challenge. The suit is expected to be filed within the coming weeks, according to a Reuters report cited by Engadget.
The deal has faced scrutiny since Paramount officially announced it had outbid Netflix for Warner Bros. back in February. California Attorney General Rob Bonta launched a probe into the deal shortly after it was announced.
Bonta voiced his concerns in a statement at the time. "Further consolidation in markets that are central to American economic life does not serve our economy, consumers, or competition well. In fact, consolidation of markets has led to increased unaffordability, a loss of good-paying job opportunities, and fewer choices for consumers," Bonta said. He added that the deal "must receive a full and robust review," and that the state is "committed to fighting market consolidation that we find unlawful."
The full list of states joining the lawsuit has not been made public. Reuters' source indicated the suit is expected within weeks, but no specific filing date has been announced.
