Ongoing antitrust litigation from 12 states, including a temporary restraining order and scheduled trial in March 2027, has driven trader skepticism that the Paramount Skydance-Warner Bros. Discovery deal will close by year-end 2026. Following DOJ clearance in June, the states sued in July alleging reduced competition in film distribution and cable channels. Parties responded by stipulating a freeze until June 2027 or a final ruling, whichever comes first, while extending the merger agreement deadline accordingly. This regulatory and legal overhang outweighs prior shareholder approvals and creates clear barriers to a 2026 resolution, though an unexpected early settlement could still alter the timeline.