US States Consider Suing to Block Paramount's $110 Billion Warner Bros Deal

US states are preparing to sue to block Paramount Skydance's (PSKY) roughly $110 billion acquisition of Warner Bros Discovery (WBD), even though the deal already cleared a federal antitrust review in mid-June. California, New York and other states are reportedly finalizing a separate lawsuit that could be filed as soon as next week, arguing the combination would meaningfully reduce competition across the media and entertainment industry.

Paramount Skydance agreed in February 2026 to acquire Warner Bros Discovery for $31 a share in cash, a deal that values the target's equity at about $81 billion and carries an enterprise value near $110 billion once assumed debt is included. The Justice Department's Antitrust Division cleared the merger without conditions after an eight-month review, and Warner Bros Discovery shareholders separately approved the transaction in April.

Separately, Oregon's attorney general has asked a Multnomah County court to force Paramount to hand over lobbying-related records and to delay the deal's closing by 60 days, accusing the company of dragging out a subpoena while racing to close before the state's own antitrust probe concludes. Paramount has said it will not close before July 22, having already pushed the date back once from July 16. A hearing on Oregon's request is set for Monday, and investors should watch both that ruling and whether other states follow through with a formal suit, either of which could push the merger's close further into the second half of 2026.

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