Investing.com -- Warner Bros Discovery and Paramount Skydance shares declined Friday following a report by Reuters that U.S. states plan to file a lawsuit to block Paramount Skydance's acquisition of Warner Bros.

Warner Bros Discovery shares fell 2.4% while Paramount Skydance dropped more than 4.4% during midday trading.

A group of U.S. states is preparing legal action to prevent the acquisition, the report said citing sources familiar with the matter. The specific states that will participate in the lawsuit were not immediately identified.

California Attorney General Rob Bonta said Thursday that his office would make a decision on potential action soon.