Paramount Skydance (PSKY) Stock Drops as Warner Bros. Merger Hits Legal Wall

TLDR

• Paramount Skydance agreed to pause its $81 billion merger with Warner Bros. Discovery until a court ruling or June 2027, whichever comes first.
• 12 state attorneys general, led by California, sued to block the deal on antitrust grounds.
• A California federal judge had already granted a temporary restraining order halting the deal.
• The delay triggers a costly “ticking fee” of roughly $650 million per quarter starting in October.
• If the deal is blocked or unresolved by June 2027, Warner could demand a $7 billion termination fee from Paramount.

Paramount Skydance (PSKY) closed down 3.3% on Friday after the company announced it would pause its merger with Warner Bros. Discovery (WBD), which fell less than 1%. The $81 billion deal is now on ice until at least a court ruling — or June 1, 2027.

Paramount Skydance Corporation Class B Common Stock, PSKY

The pause follows a California federal court granting a temporary restraining order that stopped the deal from closing within 28 days. Rather than face a preliminary injunction hearing scheduled for next week, Paramount agreed with 12 state attorneys general to halt the merger while the antitrust case proceeds.

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