Paramount and California AG Negotiate Terms to Resolve Warner Bros. Discovery Merger Block
Five weeks ago, Paramount Global (PSKY) was considering selling CNN as part of efforts to resolve an antitrust lawsuit blocking its $110 billion acquisition of Warner Bros. Discovery (WBD). However, the terms under discussion have shifted from structural divestitures like selling assets toward behavioral remedies such as content monitoring and theatrical release quotas for WBD’s networks. The California Attorney General has historically favored structural solutions to protect competition, but Paramount is now negotiating with less costly concessions that avoid asset sales. The Wall Street Journal also reported discussions of operating the studios separately temporarily rather than merging them immediately—a delay tactic rather than a full divestiture. These developments suggest Paramount may be willing to keep its acquisition intact while addressing regulatory concerns through behavioral commitments. The merger, agreed in February 2026 at $31 per share for WBD (valuing the deal at $81 billion equity and $110 billion including debt), faces a ticking fee of $7 million daily after September 30 if it remains unclosed. A March 2027 trial date could result in over $1.3 billion in fees before any verdict, prompting Paramount to request the states post an $1.88 billion bond.
Topics: antitrust merger negotiations Paramount Global regulatory approval Warner Bros. Discovery