NEW YORK, July 24, 2026, 17:08 EDT — Regular session has ended; after-hours market activity continues.
- WBD finished Friday at $25.77, slipping 0.7% for the day and dropping 4.1% over the week.
- The $31 per share all-cash proposal represents a 20.3% premium. Postponing the decision through June 1 increases the value by roughly $0.68 per share.
- The parties are required to file a trial schedule by July 31. WBD will announce quarterly results on August 6.
Shares of Warner Bros. Discovery, Inc. NASDAQ:WBD closed at $25.77 on Friday, leaving a 20.3% gross spread to the $31 per share cash proposal from Paramount Skydance Corporation NASDAQ:PSKY.
With 2.507 billion basic shares, this difference amounts to around $13.1 billion. Postponing the decision until June 1 would increase the amount by about $1.7 billion, covering just 13% of the total gap.
The discrepancy serves as a signal to investors. It indicates that the market is factoring in more than just the cost of waiting. Investors also perceive a significant risk that the deal could collapse.
WBD declined 4.1% during the week, dropping from $26.87 to $25.77. The majority of losses occurred on Monday following the initial restraining order, with shares sliding 3.8% that session.
Trading volume on Friday was 35.8 million shares, 73% higher than the 65-day average. PSKY ended the session at $8.21, falling 3.5%.
| Preliminary investor arithmetic | Per share | Approximate basic-share value | Friday comparison |
|---|---|---|---|
| WBD stock price | $25.77 | $64.6 billion | — |
| Initial merger bid | $31.00 | $77.7 billion | 20.3% premium |
| Present difference to bid | $5.23 | $13.1 billion | 20.3% of price |
| Incremental ticking by June 1 | $0.678 | $1.70 billion | 2.6% of price |
| Potential regulatory fee* | $2.79 equivalent | $7.0 billion | 10.8% of price |
The table is based on basic shares, rather than fully diluted merger units. Numbers reflect preliminary calculations and are not projections. The $7 billion fee is allocated to WBD, not to shareholders directly.
The merger agreement provides for an extra $0.00277778 per share for each day beyond September 30. With March’s share count, this equates to around $6.96 million each day. By June 1, this cumulative increase amounts to roughly $0.678 per share.
Friday’s order prevents closing or integration until the earlier occurs: either five days after a ruling on the merits, or June 1, 2027. The injunction hearing set for August 3 was canceled.
The Writers Guild has dropped its request for a preliminary injunction as part of the agreement. Both sides are required to submit a joint statement setting out the trial schedule by July 31. That submission is expected to drive next week’s main developments.
Reuters analysis shows similar merger cases typically take around eight months for a decision. This timeline would extend the closing date beyond September 30, causing the ticking fee to begin accumulating.
Paramount advanced on Friday following a new regulatory development. Chief Legal Officer Makan Delrahim described the European Union’s approval on Wednesday as “another significant milestone.” The clearance included remedies related to film distribution. Paramount
The states have a contrasting perspective. New York Attorney General Letitia James described the pause as “a critical victory.” The lawsuit claims that competition in film and television would be diminished. New York State Attorney General
If certain regulatory termination criteria are met, Paramount must pay WBD $7 billion. This amount corresponds to approximately $2.79 for each basic share and represents around 24% of WBD’s net debt in March.
WBD scheduled its second-quarter earnings release for August 6, before market open. As of March, the company reported $32.5 billion in debt and $3.3 billion in cash. The upcoming figures will provide investors with insight into the company’s standalone valuation.
Risks: The $7 billion fee is subject to conditions and may not deliver a direct dollar-for-dollar benefit. Legal decisions, appeals, funding challenges or disappointing outcomes could cause significant volatility in the spread.
