Paramount and Warner Bros. Discovery shares fell on news that multiple states will file lawsuits to block the merger. Several states are preparing to file lawsuits to block Paramount's acquisition of Warner Bros. Discovery. Shares of Paramount Skydance and Warner Bros. Discovery fell sharply after reports that multiple states were preparing to file lawsuits to block the proposed merger of the two media companies.
The merger has been under regulatory review since it was approved by shareholders in April. Paramount CEO David Ellison has publicly stated that the deal is expected to be completed by September.
Reuters reported on Friday that several states were moving to file lawsuits to block the merger, but it was not immediately clear which states were involved. Reuters also reported earlier in the day that California Attorney General Rob Bonta would make a decision soon on whether to file a lawsuit to block the deal.
Paramount shares were down 7% in afternoon trading, while Warner Bros. Discovery shares were down 2%.
Paramount said in a statement on Friday: "Opposing this deal means opposing expanding consumer choice, opposing creating new opportunities for creators and workers, and opposing increasing competition across the entire creative ecosystem - which is completely contrary to the goals of antitrust law. It also means giving existing giants such as Netflix an advantage they should not have. We will continue to fight any attempts to derail this transaction, because this transaction clearly benefits consumers, creators and the entire industry."
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