Why the Warner Bros. Discovery Merger Is Suddenly Facing New Pressure

This article first appeared on GuruFocus.

Warner Bros. Discovery (NASDAQ:WBD) shares slipped on Friday after a report said Paramount Skydance (NASDAQ:PSKY) hired a prominent lawyer to help defend its planned takeover of Warner Bros. Discovery in court.

Puck News, citing a post on X from one of its founders, said Paramount Skydance brought in Jeffrey Kessler to handle the legal fight over the proposed $110 billion deal. Kessler has also represented states in the Live Nation (LYV) antitrust case.

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That background has drawn attention because a New York federal jury recently found Live Nation overcharged customers and tied venue access to its promotion business, opening the door to large penalties and possible structural changes.

Warner Bros. Discovery investors have also been watching California Attorney General Rob Bonta, who has said he is reviewing the deal. Paramount Skydance has said it wants to close the transaction as soon as July, though any court challenge could push that timeline back.

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