Shares of Warner Bros Discovery (Nasdaq: WBD) and Paramount Skydance (Nasdaq: PSKY) jumped at the start of trading today, gaining between 6% and nearly 8%, after The Wall Street Journal reported that Paramount and the state of California are in advanced talks to settle the antitrust lawsuit that has blocked Paramount’s $110 billion acquisition of Warner Bros Discovery since last July.
The deal: $110 billion, $31 a share
The agreement, officially announced on February 27, 2026, calls for Paramount Skydance — the company controlled by the Ellison family and RedBird Capital, formed by the merger of the old Paramount with Skydance Media — to acquire Warner Bros Discovery for $31 a share in cash, for a total enterprise value of $110 billion and an equity value of roughly $81 billion (source: Paramount’s official statement).
If the deal doesn’t close by September 30, 2026, Paramount must pay WBD shareholders a «ticking fee» of $0.25 per share for every quarter of delay — roughly $7 million a day, according to estimates cited by the financial press.
The antitrust snag: 12 states against the merger
The US Department of Justice cleared the deal unconditionally on June 12, 2026, after an eight-month review, finding «no threat to competition» in the sector. But on July 12, a coalition led by California Attorney General Rob Bonta, joined by eleven other states (including New York), sued to block the merger, arguing it would excessively concentrate film distribution in theaters and cable-channel licensing in violation of federal antitrust law. «This illegal merger of two entertainment giants would lead to higher prices, lower quality and less content,» Bonta said in the official statement. Absent a settlement, the trial is set for March 2027.
Talks broke down in August
In late August, direct negotiations between Paramount and California had broken down, with trade press reporting that Bonta’s office had taken a notably tough public stance toward its counterpart. Today’s reports, not yet officially confirmed by either side, point to a possible package that would include a $1.5 billion investment in California production, a commitment to keep both historic studio lots open, penalties for missing an annual production target, the possible divestiture of some cable channels, and a safeguard mechanism for CNN’s editorial independence.
Editor’s note
This article was originally published in Italian on money.it by Ufficio Studi Money.it on September 21, 2026 as «Warner Bros Discovery e Paramount Skydance volano in Borsa. Si avvicina l’intesa sulla maxi-fusione da 110 miliardi». It has been translated and adapted for an international audience by the Money.it International desk.
