Warner Bros. gains on report Newsom concerned about AG suit over Paramount deal

[Warner Brothers Discovery - Ottawa office in Kanata, Ottawa, Ontario, Canada]
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Warner Bros. Discovery (WBD [https://seekingalpha.com/symbol/WBD]) advanced 3.5% after a report that California Gov. Gavin Newsom is concerned about the state's antitrust lawsuit to block the Paramount Skydance (PSKY [https://seekingalpha.com/symbol/PSKY]) deal. Paramount ticked higher by 0.7%.

Newsom is concerned that if the $110 billion acquisition of Warner Bros. (WBD [https://seekingalpha.com/symbol/WBD]) is blocked, it could have implications for employment in the state, according to a WSJ report [https://www.wsj.com/business/media/newsom-expresses-concerns-about-state-antitrust-suit-against-paramount-1bc20411]on Friday, which cited people close to the lawsuit.

Newsom's office is encouraging Attorney General Rob Bonta's office to find a settlement outside of court, according to the report. Newsom doesn't have any role in the litigation and doesn't have authority over the state AG's actions.

Representatives for Newsom and Bonta declined to comment to the WSJ.

The news comes after California led a group of 12 states in a lawsuit to challenge the mega media [https://seekingalpha.com/news/4613234-multiple-states-are-expected-to-file-suit-against-warner-brosparamount-today---cnbc] deal earlier this month. Paramount (PSKY [https://seekingalpha.com/symbol/PSKY]) last Friday announced it will delay its acquisition [https://seekingalpha.com/news/4618362-paramount-skydance-agrees-to-delay-warner-bros-merger-until-june-2027#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]of Warner Bros. (WBD [https://seekingalpha.com/symbol/WBD]) until five days after the court issues a final decision on the merger, or until June 1, 2027, whichever comes first.

The WSJ report also comes after AMC Entertainment (AMC [https://seekingalpha.com/symbol/AMC]) CEO Adam Aron said he favors the combination. [https://seekingalpha.com/news/4621907-amc-ceo-says-he-strongly-supports-warner-brosparamount-skydance-deal]

"It’s critical to the industry’s future that this transaction be completed as soon as possible so that we all can build on the momentum that finally — after six tough years — only recently has been established," Aron wrote in a piece in Variety o [https://variety.com/2026/biz/news/amc-theatres-adam-aron-paramount-warner-bros-merger-1236823859/]n Wednesday. "For that to happen, though, the legal challenge from a group of possibly well-intentioned state attorneys general must be overcome."

MORE ON WARNER BROS. DISCOVERY, PARAMOUNT SKYDANCE CORPORATION, ETC.

* The Reasons Why The Q2 Results Are Not Enough To Buy AMC Entertainment [https://seekingalpha.com/article/4927052-the-reasons-why-the-q2-results-are-not-enough-to-buy-amc-entertainment]
* Warner Bros. Discovery And Paramount Skydance: The Risks Have Not Changed But The Potential Return Has Improved [https://seekingalpha.com/article/4925159-warner-bros-discovery-paramount-skydance-risks-not-changed-potential-return-improved]
* Paramount Skydance Corporation (PSKY) Shareholder/Analyst Call Prepared Remarks Transcript [https://seekingalpha.com/article/4923863-paramount-skydance-corporation-psky-shareholder-analyst-call-prepared-remarks-transcript]
* Billions at stake as the Barbie sequel timeline shrinks for Warner Bros. and Mattel [https://seekingalpha.com/news/4622612-billions-at-stake-as-the-barbie-sequel-timeline-shrinks-for-warner-bros-and-mattel]
* AMC CEO says he strongly supports Warner Bros/Paramount Skydance deal [https://seekingalpha.com/news/4621907-amc-ceo-says-he-strongly-supports-warner-brosparamount-skydance-deal]