A group of about a dozen U.S. states plans to sue on Monday to stop Paramount Skydance Corp. from acquiring Warner Bros. Discovery Inc. The move marks a major challenge to the proposed $110 billion media merger.

According to a person familiar with the matter, the states will file an antitrust lawsuit in federal court. The legal action comes after months of scrutiny from state attorneys general.

States Challenge Media Giant Merger

The deal has already secured approval from the U.S. Justice Department. However, regulators in Europe are still reviewing the transaction. Europe’s antitrust watchdog is expected to make a decision later this month.

If approved, the merger would unite Warner Bros. and Paramount. Warner Bros. ranks as the second-largest U.S. film studio by box office revenue, while Paramount holds fifth place.

The transaction would also put David Ellison, son of Oracle co-founder Larry Ellison, in charge of CBS, CNN, Paramount+, and HBO Max.

Paramount Defends the Deal

Paramount argues that the merger will strengthen competition in the entertainment industry.

David Ellison has pledged to increase content production. He has promised to produce 30 films a year for theatres and expand television programming.

He also said “a combined HBO Max and Paramount+ streaming business will be better able to compete with industry leaders like Netflix Inc.,” while noting that the companies’ news divisions could work together.

Opposition Grows in Washington and Hollywood

The merger faces strong opposition from Democrats in Washington and many people in Hollywood.

Actors, directors, producers, and writers argue that the deal could reduce jobs, raise production costs, and limit choices for viewers.

California has led the states’ antitrust investigation into the merger. California Attorney General Rob Bonta criticised the Trump administration’s decision to clear the deal during a June interview with Bloomberg.

Bonta’s office declined to comment on the expected lawsuit. Paramount representatives also did not immediately respond to requests for comment.

The planned lawsuit adds another obstacle for a merger that continues to face political, regulatory, and industry scrutiny.