Paramount delays Warner Bros. Discovery closing to July 22 amid investigation

The delay signals that federal approval from the Department of Justice is not a guaranteed path to closure in a bifurcated regulatory environment. While the DOJ cleared the deal in June without concessions, state-level scrutiny over lobbying and market concentration creates significant execution risk. These administrative hurdles could trigger the $650 million quarterly 'ticking fee' owed to Warner Bros. Discovery shareholders if integration is pushed into Q4. For the broader ecosystem, this indicates that mega-mergers will face decentralized resistance even under a permissive federal stance. Watch for the California Attorney General's decision on a separate multistate lawsuit to block the deal entirely.

The state-level resistance in Oregon is part of a broader, coordinated push by state attorneys general to challenge the $110 billion merger despite federal clearance. Per Reuters (July 2026), California Attorney General Rob Bonta is currently leading a coalition with New York and approximately eight other states that could file a formal lawsuit to block the transaction as early as next week. This group is specifically investigating whether the combination of two major Hollywood studios and their respective news outlets, CNN and CBS News, would substantially reduce competition and editorial independence in violation of state antitrust laws.

In addition to domestic pushback, the deal faces significant international scrutiny. Per Investing.com (July 2026), the European Commission extended its own decision deadline to July 22 after Paramount offered concessions, which reportedly include exiting its SkyShowtime film distribution joint venture with Universal Pictures. Meanwhile, the United Kingdom’s Competition and Markets Authority (CMA) has also opened an investigation, with culture minister Lisa Nandy stating she is "minded to intervene" on public interest grounds regarding media plurality. These overlapping regulatory timelines are nearing the critical September 30 mark, after which Paramount must pay an estimated $7 million daily fee to WBD shareholders for any further delays.

The financing of the deal has also drawn political attention due to the $24 billion contribution from sovereign wealth funds in Saudi Arabia, Qatar, and the United Arab Emirates. While these external partners reportedly lack governance rights, per the Los Angeles Times (June 2026), critics have cautioned that the sheer scale of foreign investment in a major American news and entertainment conglomerate warrants deeper oversight. Despite these challenges, the U.S. Department of Justice maintained in its June approval that the media and entertainment industry remains "highly dynamic" and the transaction is unlikely to harm consumers.