Paramount and Warner Bros. Discovery are set to report second-quarter earnings this week, with both firms likely to sidestep questions about their $110 billion merger, which remains stalled amid an antitrust challenge from 12 state attorneys general and the Writers Guild of America. A judge is expected to set a trial date soon, and the prolonged uncertainty has weighed heavily on both companies' share prices, with Paramount stock down 40% and WBD down 7% since the deal was announced in late February.

Analysts expect Paramount's revenue to be flat at around $6.9 billion with earnings per share falling to 17 cents, while WBD is projected to post revenue of $9.2 billion and a loss of 10 cents a share, reversing a profit a year earlier. Both companies' streaming arms are growing, with Paramount+ reaching 79.6 million subscribers and HBO Max topping 140 million and expected to hit 150 million by year end, though declining linear TV operations remain a shared concern, particularly given that cable network concentration features in the AGs' lawsuit. Opinion in Hollywood is split between those who fear the merger will harm a legacy studio and its workers, and others who worry the alternative could be worse.