The proposed $110 billion acquisition of Warner Bros. Discovery, Inc. (NASDAQ:WBD) by Paramount Skydance, Inc. (NASDAQ:PSKY) is facing growing opposition after the Screen Actors Guild-American Federation of Television and Radio Artists, or SAG-AFTRA, backed a multistate legal effort to block the deal.
SAG-AFTRA Backs States Challenging the Deal
On Saturday, SAG-AFTRA’s National Board adopted a resolution opposing the transaction and voiced support for the attorneys general from 12 states seeking to stop the merger in court.
The union, which represents about 160,000 actors, broadcasters, recording artists, stunt performers and other media professionals, said the acquisition should not move forward without legally binding safeguards to prevent production cuts and ensure a greater share of film and television projects are produced in the U.S.
The SAG-AFTRA National Board adopted a resolution publicly opposing the Paramount Skydance acquisition of Warner Bros. Discovery, asserting its support of the attorneys general from a dozen states who have filed suit to block this action.
— SAG-AFTRA (@sagaftra) July 26, 2026
More here: https://t.co/ybNmXpLk9u pic.twitter.com/99kyyF7BIv
The move adds labor opposition to an already intensifying antitrust battle over one of the largest media mergers in recent years.
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States Argue Deal Would Reduce Competition
The lawsuit, led by California Attorney General Rob Bonta and joined by 11 other states, argues that combining Paramount and Warner Bros. would consolidate major film studios, television assets and the HBO Max and Paramount+ streaming platforms under one company.
However, Oregon withdrew a procedural court motion related to the case as it reviews its legal strategy.
The all-cash deal, valued at $31 per share, has already received approval from the U.S. Department of Justice, the EU and regulators in Australia, Austria and Kuwait.
Merger Delayed as Legal Fight Intensifies
The union’s announcement follows Paramount Skydance’s decision on Friday to extend the outside closing date for the acquisition to as late as June 2027.
A U.S. district judge recently issued a temporary restraining order pausing the deal while the case moves forward.
Paramount described the revised timeline as a “significant win,” saying it now has “a direct path to a trial based on the evidence.”
The company also argued that the states’ market definitions “bear no relationship to the realities of today’s marketplace.”
Price Action: Paramount shares closed at $8.21 on Friday, down 3.30%, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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