Twelve states, including California and New York, sued to block Paramount’s takeover of Warner Bros. Discovery on Monday, arguing that the $81-billion US merger would "extinguish competition" in Hollywood and lead to fewer choices for consumers across the U.S.

The deal already cleared federal regulators, but now faces a challenge from a coalition of 12 states.

A group of Democratic states is challenging Trump’s Department of Justice to block Paramount’s takeover.

California and eleven states are suing to block Paramount's acquisition of Warner Bros. Discovery. They allege the deal would lessen competition in film distribution and cable…