Paramount Shares Fall to $9.91 as $111 Billion WBD Merger Slips 2 Weeks
Updated
Updated · Deadline · Sep 21
Paramount Shares Fall to $9.91 as $111 Billion WBD Merger Slips 2 Weeks
3 articles · Updated · Deadline · Sep 21
Summary
Paramount closed at $9.91, a one-month low, after CEO David Ellison said the Warner Bros. Discovery merger will take about two more weeks to complete.
Settlements with 12 state attorneys general and the Writers Guild of America cleared major legal obstacles to the $111 billion deal, but the extra time revived concern over delay costs.
Paramount faces a ticking fee of about $7 million a day to WBD shareholders for every day after Oct. 1 that the transaction remains unfinished, a burden that could reach roughly $650 million a quarter.
Warner Bros. Discovery shares jumped 11% while analysts called the settlement terms favorable to Paramount because they relied on behavioral remedies, not major asset sales or other structural concessions.
The July lawsuits had gained traction despite federal approval, and the settlement now leaves debate centered on merger fallout such as media concentration, newsroom independence and potential layoffs.