Paramount shares rose 2% to $10.11 after an antitrust settlement removed a major obstacle to its proposed $111 billion merger with Warner Bros Discovery (WBD). However, investors remain cautious because the deal could create substantial debt, depends heavily on declining pay-TV networks and may incur a $7 million daily fee if it has not closed by 1 October.

Analysts are focusing on Paramount’s ability to deliver $6 billion in annual cost savings and improve the combined company’s financial performance. Guggenheim called the merger a “show me” story, while Morgan Stanley was more optimistic that savings could come from consolidating technology and cloud services, reducing property and marketing costs, and cutting other overheads; the company must also pursue revenue growth and stronger profit margins by 2030.