New York, June 13, 2026 — Paramount Skydance Corporation (PSKY) shares climbed in after-hours trading Friday after the U.S. Department of Justice cleared the company's proposed $81 billion acquisition of Warner Bros. Discovery (WBD), eliminating a critical domestic antitrust obstacle. The stock rose 2.77% to $10.76 in extended trading, following a regular session that ended at $10.47, down 0.19%.
DOJ Green Light Removes Key Hurdle
The DOJ's antitrust review concluded that the merger is unlikely to substantially harm competition or consumers, a pivotal development for a deal that has seen PSKY trade largely as a merger-arbitrage play. Each regulatory approval reduces the risk of the transaction collapsing, while any legal or regulatory challenge would increase costs for investors betting on a successful close.
With the U.S. regulatory path now clear, attention shifts to Europe. The European Commission is scheduled to announce its decision by July 7, and could either clear the deal outright, request concessions such as asset sales, or launch an in-depth investigation. A separate European foreign-subsidy review is expected to rule by July 14, adding another layer of complexity.
Deal Structure and Financial Details
Under the terms of the agreement, Paramount will acquire Warner Bros. Discovery for $31 per share in cash, implying an equity value of $81 billion and an enterprise value of approximately $110 billion, which includes debt and cash adjustments. Paramount has projected over $6 billion in annual synergies from the combined entity, spanning cost savings and revenue enhancements. Post-synergy, the company expects net debt-to-EBITDA to stand at 4.3x.
The merger would unite a vast portfolio of media assets, including Paramount+, HBO Max, CBS, CNN, major film studios, and expanded sports rights. Paramount's Q1 results showed revenue of $7.3 billion, up 2% year-over-year, adjusted EBITDA of $1.2 billion (up 59%), and direct-to-consumer revenue of $2.4 billion (up 11%), with Paramount+ revenue rising 17%. CEO David Ellison has stated the combined group will “create even greater value for audiences, partners and shareholders.”
Remaining Risks and Litigation Concerns
Despite the DOJ approval, the deal faces several unresolved challenges. According to Reuters, attorneys general from California, New York, and other states are preparing to file a lawsuit to block the transaction. In the UK, the Competition and Markets Authority has set an August 7 deadline for its phase-one review. Additionally, the Federal Communications Commission is conducting a separate foreign-investment review, though Paramount has stated this is not a closing condition and that the Ellison family retains voting control.
Analyst sentiment on PSKY remains cautious. Over the past three months, nine analysts have issued one buy, four holds, and four sell ratings, with a 12-month average price target of $11.29—only slightly above the $10.47 regular close. The stock's 52-week range is $8.62 to $20.86, with negative earnings per share of $0.51, underscoring its high-risk profile.
Market Outlook and Event-Driven Dynamics
Paramount Skydance shares are likely to remain volatile pending the European Commission's decision and the outcome of potential state litigation. If regulators in Europe and the UK impose minimal remedies and management delivers on the $6 billion synergy target, bullish sentiment could strengthen. However, if the deal faces further delays beyond the September 30 deadline, selling pressure may intensify. The merger agreement includes a ticking fee of 25 cents per share per quarter for WBD holders if closing is delayed.
For now, PSKY remains a high-risk, event-driven stock with limited upside based on current fundamentals. Investors should closely monitor regulatory developments and litigation risks in the weeks ahead.
