Raymond James expects WBD and PSKY deal to close July 22

Investing.com -- Raymond James said today it expects Warner Bros. Discovery and Paramount Global to proceed with closing their merger on July 22, despite a lawsuit filed by a coalition of 12 state attorneys general.

California Attorney General Rob Bonta announced today that he is leading the coalition in challenging the merger. The coalition includes attorneys general from Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. All participating states are led by Democratic attorneys general.

The lawsuit focuses on antitrust concerns in three markets: theatrical film distribution, anticipated top-grossing theatrical film distribution, and licensing of basic cable television channels. The combined company would hold an estimated 27% to 30% market share in each of these markets.

Paramount Global issued a press release after the lawsuit was filed, stating the merger increases competition and noting that 24 jurisdictions including the United States have already cleared the transaction.

Raymond James said the companies will likely attempt to close the deal on July 22 and address any required remedies after closing, similar to the Tegna/Nexstar transaction. The coalition has asked the companies to delay closing until the judicial process concludes but has not yet moved for a temporary restraining order.

The streaming market was not included in the lawsuit. Bonta stated in a press conference that reports of a potential CNN divestiture were not related to his involvement or jurisdiction. He said he prefers to settle problems in the board room rather than the court room, but the states felt obligated to file a lawsuit based on the facts and law.

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