Paramount Skydance Corp. (NASDAQ:PSKY) shares are in the spotlight Monday as investors continue to digest Friday’s landmark DOJ approval of the company’s $110 billion acquisition of Warner Bros. Discovery, Inc. (NASDAQ:WBD) — though the deal still faces hurdles from European regulators and a potential state attorneys general lawsuit.

The DOJ Approval

The DOJ’s Antitrust Division cleared the merger without requiring any divestitures, behavioral remedies, or other concessions, concluding that the deal “is not likely to result in harm to competition or American consumers,” including with respect to streaming, linear television, and studio film distribution. The approval came after Paramount CEO David Ellison met directly with DOJ officials during the review process. Australia’s Competition and Consumer Commission also approved the deal last week, and New Zealand’s Commerce Commission said it does not intend to review it further.

What the Merger Creates

Under the terms of the agreement, Paramount will pay $31 per share in cash for all outstanding shares of WBD, valuing the transaction at an enterprise value of $110 billion — a multiple of 7.5x on fully synergized 2026 EBITDA. The combined company would bring together Paramount+, HBO Max, CBS, CNN, Warner Bros. Pictures, Paramount Pictures and some of Hollywood’s most valuable franchises — including Game of Thrones, Mission Impossible, Harry Potter, Top Gun, the DC Universe and SpongeBob SquarePants.

What’s Still Standing in the Way

The DOJ approval is significant but not the end of the road. The UK Competition and Markets Authority has formally launched an investigation and has until August 7 to decide whether to refer the merger for a deeper second-phase review. The EU regulator has also begun reviewing the deal, with a July 14 deadline for vetting. State attorneys general from California and New York are reportedly preparing a lawsuit to block the deal, with California Attorney General Rob Bonta saying the state “intends to be vigorous in its review.” The deal is expected to close by Q3 2026 — after which a ticking fee of $0.25 per share per quarter kicks in for WBD shareholders.

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Paramount Shares Spike

PSKY Price Action: At the time of publication, Paramount shares are trading 2.18% higher at $10.70, according to data from Benzinga Pro.

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