DOJ Sides With Paramount on $1.88B Bond Demand in WBD Merger Case

Paramount is in advanced settlement talks with California AG Rob Bonta to resolve an antitrust lawsuit over its $110B acquisition of Warner Bros. Discovery. The deal may require Paramount to operate its movie studio separately for a period. The acquisition could create a major sports rights portfolio. Paramount faces a $7M daily fee if the deal isn't finalized by next month.

Mark Ruffalo urged California Attorney General Rob Bonta to reject a settlement between Paramount Skydance and his office over an antitrust lawsuit challenging the proposed $111 billion merger with Warner Bros. Discovery. Ruffalo cited support from 5,670 filmmakers and 75,000+ others opposing the deal. The merger has faced regulatory hurdles, including a lawsuit from state attorneys general and the Writers Guild of America.

The DOJ cleared the $110-111B Paramount-Skydance acquisition of Warner Bros Discovery, citing no likely harm to competition. State AGs and the Writers Guild sued, halting the deal. The DOJ reviewed market shares and competitive dynamics, while states argue the merger could reduce competition in key markets.

Paramount and state attorneys general are nearing a settlement on its $110 billion acquisition of Warner Bros. Discovery, addressing antitrust concerns. Shares of both companies rose in after-hours trading. The deal faces a $7 million daily fee starting October 1, 2026, and a trial is set for March 2027. Terms include independent CNN oversight and a commitment to release 30 films annually. The settlement would remove a major legal hurdle, but opposition from the Writers Guild and others remains.

Paramount Skydance (PSKY) shares fell 3.9% to $10.21 on heavy trading volume. The FCC approved foreign ownership exceeding 25% for its Warner Bros. Discovery (WBD) acquisition, but a state antitrust case remains. WBD shares also declined 1.6% to $27.80. The FCC ruling does not resolve the antitrust lawsuit, which is the final obstacle. Paramount faces a $7 billion break fee if the deal fails, funded by issuing new shares at $16.02 each.

Paramount and 12 states led by California are nearing a settlement to resolve a lawsuit over its $110B acquisition of Warner Bros. Discovery. The deal, facing antitrust concerns, may involve structural remedies like separating movie studios and divesting cable channels. Paramount faces daily fees and potential job relocations if unresolved by October 1.