Logo text A lawsuit has been filed challenging Paramount ‘s $110 billion megadeal for Warner Bros. Discovery, the opening legal salvo over a merger that will reshape Hollywood. Paramount subscribers, in a lawsuit filed on Thursday in California federal court, allege the acquisition will substantially reduce competition in streaming, news and theatrical distribution in violation of antitrust laws. They seek a court order blocking the merger and unwinding Skydance ‘s acquisition of Paramount. The deal will consolidate “Paramount’s ability and incentive to raise prices, reduce output, narrow slates, reduce quality, and worsen consumer-facing terms, including through control of distribution, exclusivity, windowing, and licensing,” states the complaint. The lawsuit is believed to be the first legal action targeting the merger that would combine two of Hollywood’s legacy studios.…