Paramount (PSKY)’s CEO Has Cleared 68 Countries for His Warner Bros (WBD) Deal. California Still Won’t Budge

Paramount Skydance Corporation (PSKY) CEO David Ellison has secured regulatory approval in 68 countries for his $110 billion bid to acquire Warner Bros. Discovery (WBD), but California's lawsuit remains the final hurdle. CA Attorney General Rob Bonta canceled a settlement meeting with Ellison, citing a lack of good faith. PSKY faces a $650 million quarterly fee to WBD shareholders starting September 30, and is pushing for a court order to force the states to post a $1.88 billion bond.

Despite global regulatory clearance, California's home constituency is opposed to the transaction, weakening the state's incentive to settle. The deal has broad global regulatory approval, but California's antitrust lawsuits are the main obstacle. PSKY's flexibility in considering structural changes may improve settlement chances.

However, deteriorating negotiations and political resistance make a quick resolution unlikely. For WBD shareholders, settlement would unlock the transaction and reduce costs, but political factors in California complicate a swift resolution.