Paramount and Warner Bros. Discovery report quarterly earnings as $110 billion merger faces antitrust delays
Paramount and Warner Bros. Discovery are scheduled to report second-quarter earnings this week, with the merger between the two media giants currently on hold due to an antitrust challenge. The $110 billion deal, which faced opposition from the attorneys general of 12 states and the Writers Guild of America, has seen the companies' stock prices decline significantly since the deal's momentum slowed. Warner Bros. Discovery shares have slipped 7% since February, while Paramount shares have plunged 40% during the same period. Analysts expect Paramount to report flat revenue of approximately $6.9 billion and a drop in earnings per share. Warner Bros. Discovery is projected to post a loss of 10 cents a share, reversing previous year-earlier earnings. While both companies' streaming platforms, Paramount+ and HBO Max, continue to grow, linear TV operations face ongoing declines. Paramount CEO David Ellison remains optimistic about the eventual combination of the two studios, maintaining that the merger will create a leading global media company that strengthens competition and serves the creative community.