The media and entertainment sector is experiencing a slowdown in merger and acquisition activity following regulatory obstacles to the Paramount-Skydance acquisition of Warner Bros. Discovery. The $110 billion tie-up has been postponed until as late as June 2027 as state attorneys general pursue an antitrust challenge, despite receiving approval from federal regulators including the U.S. Department of Justice’s Antitrust Division. Initial settlement discussions between Paramount and California Attorney General Rob Bonta have reportedly stalled.
Industry observers attribute the emerging chill to the threat of increased state-level regulatory scrutiny. Jonathan Miller, CEO of Integrated Media, characterized the regulatory landscape as having shifted significantly, predicting a slowdown in larger combinations. The uncertainty appears particularly impactful given that federal authorities under the Trump administration were initially perceived as more favorable to mergers. While overall U.S. deal activity remains robust—exceeding 7,500 transactions through August—the extended timeline and unpredictability of state regulatory processes are creating hesitation among media executives.
Multiple significant transactions are facing potential headwinds. Fox’s planned $22 billion acquisition of Roku, expected to close in the first half of 2027, has raised regulatory timing concerns among analysts despite presenting fewer antitrust issues than the Paramount-WBD deal. Separately, Nexstar Media Group’s $6.2 billion acquisition of Tegna, which formally closed in March, is facing an unwinding lawsuit from state attorneys general with trial scheduled for next year.
Comcast’s planned separation of NBCUniversal, expected to complete next summer, has generated speculation about future dealmaking opportunities for both entities. However, leadership at both companies appears inclined to await resolution of the Paramount-WBD process before pursuing major acquisitions, viewing that outcome as an indicator of regulatory feasibility. While NBCUniversal has long been considered a potential takeover target, potential acquirers may reassess its attractiveness depending on the antitrust case’s resolution.
Instead of pursuing traditional M&A, media executives may increasingly pursue partnerships, bundles, and minority-stake opportunities as alternatives during the period of heightened regulatory uncertainty.
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