Though Paramount’s pending merger with Warner Bros. Discovery is on track to close by the third quarter, or Sept. 30, the company is reportedly hoping to get the $110 billion deal over the finish line even sooner.
Oliver Darcy’s Status reports the David Ellison-led media giant is internally eyeing July 15 as its target date to finalize the deal, citing multiple individuals with knowledge.
Representatives for Paramount deferred TheWrap to public statements that the deal is on track to close by the end of the third quarter. Warner Bros. Discovery declined to comment.
The internal timeline comes as the merger has already been approved by shareholders, but remains subject to regulatory approval.
Regulators in the U.K. are gearing up to begin their review of the deal, with its deadline for public comments closing just last month. Paramount has also asked the FCC to approve its foreign investment in the deal, with those investors set to account for 49.5% of the equity of the combined company.
Additionally, the company said there’s “no statutory impediments” remaining after the Department of Justice’s Hart-Scott-Rodino review period expired, though the regulator can still get involved at anytime in the process.
In addition to federal and international regulators, a group of U.S. state attorneys general led by California’s Rob Bonta are also reviewing the deal and weighing whether to take legal action against the merger. Bonta previously told TheWrap that “red flags are everywhere when you have a merger of this type” and that the states are prepared to “act timely,” but declined to provide a specific timeline for when a decision could be made.
“We have been cooperating with the state attorneys general in responding to their requests,” Paramount said at the time.
In a recent regulatory filing, Paramount disclosed that it has received subpoenas, or civil investigative demands, from various state AGs that focus on the investigation by the Department of Justice and the competitive effects of the merger. It does not disclose which or how many state AGs sent subpoenas.
In the event the transaction does not close by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.
Shares of Paramount Skydance, which closed at $9.90 per share as of Tuesday’s close are down 24.9% year to date, 36% in the past six months and 16% in the past month.
Warner Bros. Discovery, which closed at $27.09 per share, is down 4.9% year to date, 1.2% in the past month and 13.9% in the past five years, but is up 17.3% in the past six months and 199% in the past year.
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