On Monday, after months of speculation, California and 11 other states filed a high-stakes lawsuit seeking to block Paramount’s proposed $111 billion acquisition of Warner Bros. Discovery. In the suit, the coalition of states argued that if the mammoth deal were allowed to proceed, the combination of the two entertainment conglomerates would “extinguish competition” and “inflict substantial harm” not only on the media industry, but on consumers across the country—claims that David Ellison's Paramount strongly disputed.

The 38-page complaint, filed in U.S. District Court for the Northern District of California, is focused almost entirely on the merger’s impact on the entertainment business. The lawsuit from the states—which included New York, but also more conservative states such as Arizona and Nevada—argued that a combined Paramount and Warners would harm movie theaters and cable distributors, with the attorneys general contending that robust competition has been crucial for companies operating in the space.

"Paramount’s proposed acquisition of Warner Bros. will end this competition, threatening viewers with higher prices, the decline of theatrical exhibition of films, and a reduction in the variety, quality, and amount of content distributed," the states said in a press release.