NASDAQ:PARA 4 February 2026 - 14 June 2026

Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery cleared by the U.S. Justice Department after eight months, removing a key federal hurdle but leaving state, FCC, U.K., and EU reviews ahead; Paramount faces a $7 billion termination fee if the deal isn’t closed by September 30, adding urgency for investors as the merger would unite Paramount, Warner Bros., CBS, CNN, HBO Max, and Paramount+.

Warner Bros. Discovery shares fell 2.81% to $26.24 after reports that California, New York, and other states are preparing an antitrust lawsuit to block Paramount’s $110 billion takeover, increasing risk that the deal could be delayed or fail; the stock trades well below Paramount’s $31-a-share offer, reflecting investor doubts ahead of key U.S. and EU regulatory decisions.

Warner Bros. Discovery shares fell 3.6% Friday after Reuters reported California, New York and other states are preparing a lawsuit to block Paramount Skydance’s $110 billion takeover, pushing WBD’s price 15% below Paramount’s $31-a-share cash offer as investors brace for regulatory delays and legal risks.

California Democrats and press-freedom groups are pressuring regulators to scrutinize Paramount Skydance’s $111 billion takeover of Warner Bros. Discovery. Lawmakers cited job losses and production declines in Los Angeles, while press groups demanded records on the deal and editorial independence. The FCC is reviewing foreign investment ties, with concerns over national security and press freedom.

Thirty-four California Democrats in Congress urged state Attorney General Rob Bonta to scrutinize Paramount Skydance’s planned $111 billion takeover of Warner Bros. Discovery for antitrust harm. The lawmakers cited recent job losses in Los Angeles and warned of further consolidation. Bonta has not announced legal action. Warner Bros. Discovery shareholders approved the merger in April.

Warner Bros. Discovery shareholders face a Wednesday night deadline to vote on Paramount Skydance’s $110 billion takeover offer, with a special meeting set for Thursday morning. Shares traded 12% below the $31-per-share offer Wednesday, signaling investor doubts despite board support. The U.S. Justice Department has issued subpoenas, and UK regulators are reviewing the deal. Nearly 3,500 industry figures have signed an anti-merger letter.

California Attorney General Rob Bonta confirmed an open investigation into Paramount Skydance’s planned $110 billion acquisition of Warner Bros. Discovery. Paramount agreed to pay $31 per share in cash, with a ticking fee if the deal closes after Sept. 30, 2026. Fitch downgraded Paramount’s credit rating to junk, citing leverage risks. Warner Bros. Discovery shares fell about 1% to $27.95 in early trading.