Warner Bros. Discovery shares gained 7% and Paramount Skydance rose 5% in the September 21 session after reports indicated that settlement talks over antitrust objections to a potential merger between the two are advancing. Netflix shares did not participate in the move, sitting out the rally entirely.
The jump suggests investors see a real chance regulators could clear a deal that has faced scrutiny over combining two major studio and streaming operations. A settlement would remove one of the biggest overhangs on both stocks.
No terms of any settlement have been disclosed, and the talks are still described as ongoing rather than concluded. It remains unclear what concessions, if any, the companies would need to make to satisfy antitrust regulators.