California Governor Gavin Newsom’s concerns over an antitrust lawsuit may ease regulatory hurdles for Warner Bros. Discovery’s $110 billion deal.
Warner Bros. Discovery (WBD) shares climbed 3.5% after reports that California Gov. Gavin Newsom expressed concerns about the state’s antitrust lawsuit aimed at blocking the $110 billion Paramount-Skydance merger. The potential regulatory challenge had raised uncertainties for WBD’s own deal prospects.
Paramount (PARA) shares edged up 0.7% in response. The lawsuit, led by California’s Attorney General, targets the proposed merger between Paramount and Skydance Media, a deal valued at $110 billion. Newsom’s reported stance suggests possible pushback against aggressive antitrust enforcement in the state.
The market reaction reflects investor optimism that regulatory risks for media mergers may be easing, though no formal decision has been announced.