US states preparing lawsuit to block Paramount’s acquisition of Warner Bros, sources say

California, New York and other U.S. states are preparing a lawsuit to block Paramount Skydance’s $110 billion acquisition of Warner Bros, sources familiar with the matter told Reuters on Friday. Shares of Warner Bros fell after Reuters first reported the news and were down 3.6% on Friday afternoon. Paramount shares added to losses and were down 6.7%. 

Why it matters

Not all lawsuits seeking to block mergers succeed. But they can delay the consummation of deals by months if a judge issues an order pausing the merger while the case plays out.