Paramount agrees to delay WBD acquisition to as late as June 2027 amid legal challenge
📰 source: cnbc_topnews · 💼 business
paramount skydance agreed to delay its acquisition of warner bros. discovery to as late as june 2027 amid a legal challenge. the deal was originally expected to close by end of september. a group of state attorneys general led by california's rob bonta sued to block the merger over antitrust concerns, and a judge issued a temporary restraining order. paramount called the agreement a 'significant win' and said it provides a direct path to trial. shares of paramount skydance fell 3% on friday.
under the terms, paramount will pay a ticking fee of 25 cents per share per quarter starting sept. 30, which could add roughly $1.7 billion to the $110 billion deal price if delayed until june 2027. if the deal falls apart, paramount owes a $7 billion breakup fee. the u.s. doj and european regulators have cleared the merger, but state officials argue it reduces competition and causes job losses.
why it matters: legal challenge delays and could kill $110b media merger, potentially reshaping hollywood and streaming competition.
source: cnbc_topnews
sentiment: -0.15 · impact: 0.50