A coalition of states sued to block Paramount Skydance's acquisition of Warner Bros. Discovery, prompting a judge to issue a temporary halt last week. The companies and the coalition then agreed to delay the deal until a trial. Analyst Dave Meltzer described the situation as increasingly costly for Paramount.
The buyout had appeared close to completion before the legal challenge emerged. Paramount and the coalition reached the postponement agreement just days after the judge's order.
Meltzer addressed the developments on Wrestling Observer Radio. He noted that Paramount faces a $7 billion penalty if the deal collapses and said the company's overall value stands at $9 billion.
Meltzer added that daily penalties of $6.5 million begin in October if the transaction remains uncompleted. He questioned whether the deal will ultimately receive approval amid the mounting expenses.
