NEW YORK, March 13, 2026, 19:37 EDT
Shares of Warner Bros. Discovery slipped roughly 1% to finish at $27.14 on Friday, with trading volume reaching 26.6 million shares. Stocks broadly stayed under pressure—S&P 500 lost 0.61%.
Investors are treading carefully after two fresh signals. California Attorney General Rob Bonta on Thursday confirmed his office is actively investigating, promising a “vigorous” review. Separately, WBD has called off the March 20 stockholder meeting that was scheduled ahead of the now-scrapped Netflix deal. Los Angeles Times
Paramount, on Feb. 27, committed to acquire each WBD share for $31 in cash, no interest attached. There’s also a 25-cent quarterly ticking fee per share, calculated daily, if the deal misses the Sept. 30 closing. Both companies maintain they’re aiming to finish the transaction in the third quarter of 2026, pending regulatory and shareholder signoff.
Paramount’s already cleared at least one regulatory checkpoint in the U.S., with the Hart-Scott-Rodino waiting period—basically the government’s pre-merger antitrust timer—ending on Feb. 19. Still, the Justice Department isn’t out of the picture; it retains the power to investigate or file suit up until the deal closes. Over in Europe, Reuters noted that the merged company’s market share would remain under 20% everywhere, which points to a likely easier ride through regulators there. California, though, stands out as the big unknown.
Financing has become another headache for sentiment. Fitch slapped Paramount with a junk rating after the deal was unveiled, blaming “materially elevated leverage.” The company itself puts net debt for the merged group at roughly $79 billion. Reuters
Paramount CEO David Ellison is betting on size. In a CNBC interview now on file with the SEC, he said merging Paramount+ with HBO Max would bring the total to “over 200 million” gross subscribers before accounting for overlap—enough to chase Netflix, Disney, and Amazon. Ellison also claimed the combined company could reach investment-grade status again in three years.
Skeptics are still circling. Needham’s Laura Martin, after WBD’s most recent quarter, didn’t mince words: “The best thing for WBD shareholders is that it is being sold, because its fundamentals continue to deteriorate.” The drag is mostly from linear—the legacy cable-TV side—where both revenue and profit keep slipping. Reuters
Friday’s close sets potential gains at 14.2% for buyers, assuming Paramount sticks with the $31 payout. Still, analysts at TD Cowen warn that hurdles from California regulators—and possibly Europe—might trip things up. A setback, delay, or collapse could send WBD shares sliding back to a solo valuation.
