Paramount shares fell after settlements with 12 state attorneys general and the Writers Guild of America removed major legal obstacles to its proposed $111 billion merger with Warner Bros. Discovery. Although the agreements clear the way for completion, Paramount’s chief executive said the deal could take another two weeks to close, unsettling investors and increasing exposure to daily delay payments.

Warner Bros. Discovery shares rose 11%, while Paramount ended at $9.91 after an earlier increase. Paramount faces a ticking fee of about $7 million per day after 1 October, potentially costing roughly $650 million per quarter; analysts nevertheless viewed the settlement terms as unusually favourable because they require behavioural commitments, including protections for US production and CNN’s independence, rather than significant asset sales. Critics warned the merger could reduce competition, lead to job losses and affect consumers, while supporters argued the remedies were limited in impact.