PSKY Stock Rises Overnight: Retail Calls Bonta’s WBD Talks Snub 'Completely Unprofessional'

• Bonta canceled settlement talks after accusing Paramount of mishandling confidential discussions.
• Paramount extended its WBD debt tender and exchange offers to September 4.
• Retail traders remained ‘bullish’ despite the setback to the merger talks.  

Paramount Skydance (PSKY) stock gained overnight as investors weighed a fresh setback to the company’s proposed Warner Bros. Discovery (WBD) acquisition after California Attorney General Rob Bonta canceled settlement talks. Retail traders criticized the setback, while Paramount continues working toward a deal despite the ongoing antitrust challenge.

PSKY-WBD Merger Settlement Talks Halted

Bonta canceled a meeting scheduled for Monday after accusing Paramount of mishandling information from preliminary discussions held Friday. He also questioned the company’s representation of those talks. 

According to a Reuters report, Paramount rejected the allegations, saying it was not responsible for any leaks and remains willing to negotiate a resolution. The development adds another hurdle to Paramount’s planned acquisition of Warner Bros., a transaction valued at more than $110 billion. Bonta and attorneys general from 11 other states sued in July to stop the combination, arguing that bringing the companies together could increase concentration in movie distribution and basic cable programming.

Federal regulators have approved the deal, but the states are still challenging it in court. The trial is set for March 2027. Paramount could owe WBD shareholders up to $1.6 billion if the deal is delayed past October. Paramount Skydance stock edged 0.4% higher overnight, ahead of Tuesday. 

PSKY Extends Debt Offers 

Paramount is continuing preparations for the proposed combination despite the legal uncertainty. The company on Monday pushed the deadline for its tender and exchange offers involving Warner Bros. Discovery debt to September 4, at 5 p.m. ET, unless extended again. 

The company expects the settlement to happen shortly after the deadline and plans to keep extending the offers so they align with the closing of its proposed Warner Bros. Discovery acquisition. As of August 21, about 64.26% of the tender-offer notes and 73.82% of the exchange-offer notes had been submitted. 

What PSKY Retail Traders Are Saying 

On Stocktwits, retail sentiment around the stock remained bullish. 

A user said, “Bonta canceling today’s settlement talks with PSKY is unreal.  After weeks of delay, pulling out at the last minute feels completely unprofessional and honestly childish. When regulators worldwide have already approved this merger, canceling a scheduled negotiation doesn’t look like legal strategy — it looks like absolute weakness and incompetence.” 

Another user said, “f*** blackmail Bob, let this thing play out in court. Without the ticking fee, the AGs have nothing. I’m willing to accept the short term pain.”

A third user said, “A.G. Bonta and his liberal stooges deciding who controls the media is communism at its roots but they will fail.”

PSKY stock has declined nearly 23% year-to-date. 

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