DOJ Clears $110.9B Paramount-Warner Bros. Deal, but State Lawsuits Pose Real Closing Risk

The Justice Department closed its antitrust investigation without objection, but California, New York, and other states are preparing litigation to block the merger. A preliminary injunction from even one state court could delay closing past the Q3 2026 target. The combined entity's potential leverage over content licensing is the likely focal point of the states' competition theory. Companies must move quickly to assess legal exposure and determine whether negotiated remedies beat protracted litigation.