Several states plan to challenge Paramount's acquisition of Warner Bros. by filing an antitrust lawsuit.
CNN reported that the lawsuit likely will be filed next week. The outlet is among the properties that Paramount would be acquiring.
The U.S. Justice Department approved of the acquisition in June, writing that the "transaction is not likely to result in harm to competition or American consumers."
"Instead, the evidence shows extensive competition within the industry, which has generated greater output and diversity of film offerings, and is likely to continue unabated," the DOJ stated.
Regardless, CNN reported that critics of the deal have asked that state attorney generals take up the cause. They have argued that the transaction will consolidate news and entertainment in ways that would harm consumers.
Paramount has dismissed the concerns.
"We continue to engage constructively with regulators, including State Attorneys General, and are prepared to address any legitimate antitrust issues. We are confident this transaction raises no such concerns," the studio said in a statement to CNN.
Warner Bros shareholders approved an $81 billion offer from Paramount in April. The Associated Press reported that shareholders supported the offer to sell the company's entire business to Paramount for $31 a share, valuing the total deal at about $111 billion.
Aside from the potential impact on consumers, critics have said that the merger also could adversely affect labor by shrinking and consolidating opportunities.
The Justice Department did address this concern in its review of the deal.
"While taking seriously the potential impact of the proposed transaction on the creative community and domestic labor groups, the substantial evidence does not suggest a likelihood of reduction in output," the department stated. "That is because the demand for creative workers and labor is correlated with the Parties' incentives to maintain or expand output. Thus, the expressed labor concerns do not raise actionable antitrust concerns."
Still, CNN reported that several state attorneys general have been investigating the transaction for several months. However, with a potential lawsuit looming, those involved in the investigation have shared little information.
"The Paramount acquisition of Warner Bros. remains an active investigation, and we do not have any update to share at this time," California Attorney General Rob Bonta said in a statement to the outlet.
CNN also reported that Oregon Attorney General Dan Rayfield had sought enforcement of a subpoena related to the case on Wednesday, but that hearing was rescheduled to Monday.
