Warner Bros. Discovery, Paramount Merger Expected to Close July 22 Despite Antitrust Lawsuit, Raymond James Says

Raymond James said it expects the merger between Warner Bros. Discovery (NASDAQ: WBD) and Paramount Global (NASDAQ: PSKY) to close on July 22, despite a new antitrust lawsuit filed by a coalition of 12 state attorneys general seeking to block the transaction.

State-Led Antitrust Challenge

The lawsuit, led by California Attorney General Rob Bonta, was announced today and includes attorneys general from states including New York, New Jersey, and Colorado. The challenge alleges the merger would harm competition in three specific markets:

• Theatrical film distribution
• Top-grossing theatrical film distribution
• Licensing of basic cable television channels

The coalition argues the combined media giant would command an estimated 27% to 30% market share in each of these segments. According to the source, all attorneys general involved in the suit are Democrats. The lawsuit notably does not raise concerns about the streaming market.

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Merger Expected to Proceed

Despite the legal challenge, Raymond James noted the companies will likely move to close the deal on July 22 and address any required remedies afterward, citing the Tegna/Nexstar transaction as a potential precedent. The coalition has requested the companies delay the closing but has not yet filed for a temporary restraining order, a key legal step to halt a deal immediately.

In a press release, Paramount Global stated the merger increases competition and highlighted that the transaction has already been cleared by 24 jurisdictions, including the United States at the federal level. In a press conference, Attorney General Bonta said that while he prefers to "settle problems in the board room," the states felt obligated to file the lawsuit based on the facts and law.