Paramount Skydance Corporation (NASDAQ: PSKY) has received all regulatory clearances required under its merger agreement to acquire Warner Bros. Discovery, Inc. (NASDAQ: WBD), completing an eight-month review process spanning 68 countries, according to a company statement dated Aug. 14, 2026.

The most recent clearance came from Mexico, with prior approvals granted by the European Union, the U.K. Competition and Markets Authority, the U.S. Department of Justice, Australia's Competition and Consumer Commission, Brazil's CADE, Canada, China, and COMESA, among others.

The transaction remains blocked, however, by litigation filed by 12 state attorneys general, led by California. Paramount said the lawsuit is the sole remaining obstacle to closing.

"We are grateful that competition authorities in nearly 70 jurisdictions worldwide have independently and thoroughly reviewed this transaction and reached the same conclusion: it is pro-competitive, pro-consumer and pro-worker," said David Ellison, CEO of Paramount Skydance.

Ellison added that the company has offered commitments and concessions to the state attorneys general and remains open to a negotiated resolution, while stating the company is prepared to proceed to trial if necessary.

Paramount said the continued delay is generating penalty fees, litigation expenses, and business disruption, and that the company must weigh those costs against the financial health of a future combined entity. The company called on the 12 state AGs to engage in settlement discussions.

Among the regulatory findings cited by Paramount, the U.K. CMA concluded the deal "does not give rise to a realistic prospect of a substantial lessening of competition," while the ACCC found the merged company would remain "constrained by other film studios," including Disney, Sony, Universal, and Amazon MGM. The U.S. DOJ found that streaming services "compete aggressively" with traditional linear television.

Paramount has committed to releasing at least 30 films annually across the combined company following a completed merger.