Paramount Skydance Corp

PSKY

Market cap $10.5B

The Oregon attorney general's office said on Friday it has withdrawn its court motion to delay Paramount's proposed $110 billion ​acquisition of Warner Bros.

Paramount Skydance's (PKSY) plans to merge with Warner Bros. Discovery (WBD) face regulation roadblocks, causing shares in the former to fall.

Paramount Skydance Media (NASDAQ:PSKY) shares are trending Thursday after a report that U.S. states could sue to block the company's $110 billion acquisition of Warner Bros. Discovery Inc. (NASDAQ:WBD) as soon as next week.

Paramount CEO David Ellison has promised not to sell off assets or cut content spending.

U.S. states concerned that Paramount's $110 billion acquisition of Warner Bros. Discovery will hurt ​competition could sue to block the deal as soon ‌as next week, two sources familiar with the matter told Reuters.

Paramount has ‌said it will ​not ​close its $110 billion ⁠acquisition ​of Warner ​Bros before July 22, ​the ​Oregon attorney general's ‌office ⁠said, pushing out the ​timeline ​for ⁠the deal's ​closure by ​an ⁠additional week.

The Oregon attorney general ​will ask a ‌court to order Paramount to comply with investigative ​demands related to ​its bid to acquire ⁠Warner Bros, according ​to documents reviewed by ​Reuters.

When I wrote at the end of last year that Paramount Skydance CEO David Ellison's pursuit of Warner Bros. Discovery would likely make him the next Rupert Murdoch, both media titans already shared plenty of similarities.

When David Ellison met with the UK culture secretary on January 15, Paramount may have been in Netflix's shadow as the preferred bidder for Warner Bros. Discovery (WBD), but it did not stop the American media mogul from laying the groundwork for his long-desired deal.

Britain's threat to intervene in the $110 billion Paramount-Warner deal could be less about blocking the transaction than extracting commitments on UK news, children's TV and investment, with the cost of any delay increasing the ​government's leverage.