Warner Bros. Discovery shares rose 3.5% after a report that California Governor Gavin Newsom is concerned about the state's antitrust lawsuit seeking to block the Paramount Skydance acquisition of Warner Bros. Paramount ticked higher by 0.7%. Newsom is concerned that blocking the $110 billion acquisition could have implications for employment in the state, according to a Wall Street Journal report citing people close to the lawsuit. Newsom's office is encouraging Attorney General Rob Bonta's office to find a settlement outside of court, though Newsom has no role in the litigation and no authority over the state AG's actions. The news follows California leading a group of 12 states in a lawsuit earlier this month to challenge the deal, and Paramount last Friday announced it will delay the acquisition until five days after a court issues a final decision or until June 1, 2027, whichever comes first.
Warner Bros Discovery IncPotential settlement or reduced opposition to Paramount deal benefits Warner Bros.
Paramount Skydance Corporation Class B Common StockNewsom's concern may ease antitrust opposition to Paramount Skydance deal
AMC Entertainment Holdings Inc