New York, June 13, 2026, 11:05 (ET)
- The DOJ cleared the way for Paramount Skydance’s planned Warner Bros. Discovery takeover, removing a key U.S. antitrust risk.
- PSKY finished Friday at $10.47, slipping 0.19%. Google Finance put the stock at $10.76 in after-hours trading.
- Europe is up next. The European Commission will decide by July 7 if it will clear the deal, ask for remedies, or launch a full investigation.
Paramount Skydance Corporation shares are in play again after the U.S. Justice Department approved its planned takeover of Warner Bros. Discovery. The antitrust review said the deal probably won’t hurt competition or consumers. That’s key for PSKY, which is trading more like a merger bet these days. Every regulatory green light cuts merger risk, while any new legal snag makes closing the media deal more expensive for investors.
The stock didn’t jump. Google Finance showed PSKY finishing Friday at $10.47, off 0.19% for the session, then trading up to $10.76 after hours, up 2.77% from the close. Paramount Skydance’s market cap was about $11.72 billion on the same page. The listed 52-week range: $8.62 to $20.86. Earnings per share came in at negative $0.51. Those numbers explain why some investors look at the stock as both a high-risk media bet and a special event play.
The share price reaction tracks the deal structure. Paramount is set to acquire Warner Bros. Discovery for $31 per share in cash, putting WBD’s equity value at $81 billion and enterprise value at $110 billion, with enterprise value taking debt and cash into account. Paramount put expected synergies at over $6 billion, covering both cost and revenue. The company says the merged group would run with net debt-to-EBITDA at 4.3x after synergies. EBITDA here refers to earnings before interest, taxes, depreciation and amortization.
Paramount bull case tied to DOJ clearance, third-quarter closing looking more likely, and a way forward to merge Paramount+, HBO Max, CBS, CNN, big film studios and expand sports rights. Bulls also point to Paramount’s Q1 numbers: revenue up 2% from a year ago to $7.3 billion, adjusted EBITDA up 59% to $1.2 billion, and direct-to-consumer revenue up 11% to $2.4 billion, with Paramount+ revenue increasing 17%. CEO David Ellison said at the time of the deal announcement the combined group “create[s] even greater value for audiences, partners and shareholders.” SEC
The bear side points out this deal is not wrapped up yet. Reuters said California, New York and others are getting ready to sue to stop the deal. AP said it’s still being reviewed by regulators in the U.S. and overseas. In the UK, the Competition and Markets Authority has a merger inquiry with an August 7 phase-one deadline. Reuters also reported a separate European foreign-subsidy review is looking at a July 14 decision.
The European Commission’s July 7 competition ruling is up next and could decide the pace on the deal. It might clear it, ask for asset sales, or send the merger into a longer probe. There’s also a separate FCC foreign-investment process in play. But Reuters reported in April that Paramount said this isn’t a closing condition and that David Ellison’s family keeps voting control.
PSKY’s valuation isn’t screaming cheap after the stock jumped in after-hours trading. Google Finance’s summary of nine analysts over the last three months comes out to one buy, four holds, and four sells. Their average 12-month target sits at $11.29, just above the $10.47 regular close, so upside looks limited here. Risks stay elevated with the negative EPS, integration debt, possible litigation risk, and linear-TV pressure.
Paramount Skydance stock looks event-driven and risky, not a clear buy on current facts. Bulls get a lift if regulators in Europe and the UK don’t ask for tough remedies and if management can actually hit the $6 billion synergy goal. But if there’s state litigation, questions on foreign ownership, or higher leverage slows the deal past September 30, the bear case gets stronger. Paramount’s agreement has a 25-cent-per-share ticking fee for WBD holders each quarter if the closing misses that date.
