A group of twelve states, led by California, have taken legal action against the Paramount Skydance and Warner Bros. Discovery merger worth $111 billion, which was approved by the Trump administration last month.

The lawsuit argues that the merger would result in higher prices, lower content quality, and reduced diversity for film and television, ultimately harming audiences across the United States.

Paramount+ will be combined with HBO Max, forming a giant entertainment conglomerate. The states are asking Warner Bros. and Paramount not to proceed until the legal process concludes, or they could file a temporary restraining order.

The US Justice Department has approved the merger, stating it will not harm competition or consumers. However, this approval surprised DOJ staff who were initially leaning towards blocking the deal.

Paramount is even considering moving its corporate headquarters out of California in response to state efforts to block the merger, highlighting the potential impact on the US film industry's heartland.