Paramount makes hostile bid of US$108.4 billion for Warner California and 11 other US states are suing over the attempted acquisition of Warner Bros. Discovery by Paramount, valued at US$110 billion (R$565.4 billion), to prevent the deal from moving forward. Authorities claim that the operation would reduce competition in film distribution and pay television, harming cinemas and pay TV companies. According to the California attorney general, the states asked Paramount not to complete the merger until the lawsuit is completed. It poses a significant threat to Paramount CEO David Ellison's bid to transform the company into a major competitor to giants like Netflix and Disney. "With this lawsuit, California and our partner states are fighting for free and fair markets, not rigged markets. The United States has no kings in government or the economy," Bonta said in a statement. According to the states, if the operation is approved, Paramount would control 27% of the distribution market for films shown in American cinemas, 30% of the distribution of major cinematographic productions and 27% of the market for basic cable TV channels. A ruling on the states' allegations will likely take months, triggering a delay that could create hundreds of millions of dollars in additional costs for Paramount. Illustrative photo shows logos of Paramount and Warner Bros Reuters Actors and screenwriters are also against The agreement provoked a negative reaction from actors, screenwriters and other industry professionals, who fear impacts on jobs. Cinema owners also spoke out against the transaction, worried that the union between the Warner Bros. studio and Warner Bros. and Paramount Pictures results in a reduction in the number of films released. Paramount stated that the agreement will allow it to increase, not reduce, its production after the company cuts US$6 billion (R$5.14 billion) in redundant structures, marketing and corporate positions. Ellison promised that the combined film studios will release 30 films a year. Warner Bros Water Tower is pictured at the Warner Bros studios, in Burbank, California, USA Reuters American justice has already approved the operation The United States Department of Justice has already authorized the operation, stating that it does not present any problems related to competition. Paramount CEO David Ellison's father - billionaire Larry Ellison, co-founder of Oracle - maintains close ties to President Donald Trump, and the company has hired former members of the Trump administration. Paramount has committed to paying around US$650 million (R$3.3 billion) in fees to Warner Bros. shareholders. Discovery quarterly if the deal is not completed before October. The company stated that delays could force it to renegotiate the financing of the operation, create uncertainty about the price of its shares or even lead to the definitive cancellation of the transaction.