PSKY, WBD Merger Deal Satisfies Regulatory Conditions In 68 Countries — Paramount Says 12 State AGs Are Now The Final Hurdle

• Mexico became the latest jurisdiction to clear the transaction on Friday, completing the regulatory review across 68 countries.
• Paramount said the deal could close immediately and begin delivering the benefits recognized by regulators, theatre owners and others across the industry, but the actions of the 12 state attorneys general remain the only obstacle.
• Ellison said Paramount has offered commitments and concessions and remains open to working with the 12 state AGs to resolve the lawsuit.

Paramount Skydance Corp. (PSKY) said it has satisfied all regulatory clearances required under the merger agreement to close its proposed acquisition of Warner Bros. Discovery Inc. (WBD). With the $110 billion deal having cleared all regulatory conditions across 68 countries, Paramount Skydance CEO David Ellison is urging 12 state attorneys general to resolve their lawsuit against the pending merger.

At the time of writing in after-hours trading on Friday, PSKY stock was 1.10% higher, while WBD shares were marginally down 0.04%.

Paramount Says 68 Countries Have Cleared Deal

Paramount said the eight-month review process spanned 68 countries worldwide, including the European Union, UK, Australia, Canada, Brazil, China, COMESA, the U.S. Department of Justice and, most recently, Mexico, which announced its clearance on Friday.

Regulators in 68 countries reviewed the deal under their respective competition laws and found no basis to prevent the transaction from moving forward.

Paramount said the deal could close immediately and begin delivering the benefits recognized by regulators, theatre owners and others across the industry, but the actions of the 12 state attorneys general remain the only obstacle.

Ellison Urges State AGs To Resolve Lawsuit

David Ellison, CEO of Paramount, said, “We are grateful that competition authorities in nearly 70 jurisdictions worldwide have independently and thoroughly reviewed this transaction and reached the same conclusion: it is pro-competitive, pro-consumer and pro-worker.”

“Despite this overwhelming global consensus, the litigation brought by the State of California and 11 other State AGs remains the final obstacle to completing a combination that will create a stronger competitor with greater capacity to invest in premium content, support creative talent and workers, and deliver more high-quality entertainment to audiences.”

California and 11 other states sued to block the merger last month, alleging that it would stifle competition in wide-release theatrical film distribution, big-budget blockbusters and basic cable television channel licensing.

Paramount urged the 12 State AGs to engage with it in good faith to resolve the litigation and clear the way for the two companies to be brought together.

“While we remain confident that the law and the facts are on our side, we have offered commitments and concessions and remain open to working constructively with the State AGs to find a path forward in the interest of our employees and the creative community in California and across the world – just as we have with the regulators in 68 countries worldwide,” Ellison said.

PSKY, WBD Stocks: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for PSKY remained ‘bullish,’ unchanged in the past 24 hours, while message volume was ‘normal.’ For WBD, retail sentiment was ‘neutral’ amid ‘normal’ message volume.

Year-to-date, PSKY stock has lost nearly 25%, while WBD shares have declined by 2.8%.

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