U.S., EU lawmakers scrutinize Paramount's WBD deal

What happened: U.S. antitrust authorities are nearing approval of Paramount's $110 billion acquisition of Warner Bros. Discovery (WBD), according to a Semafor report. Meanwhile, WBD has secured a record-breaking $15 billion leveraged loan for the deal, the largest since the Global Financial Crisis. U.S. and EU lawmakers have pledged European scrutiny of the deal, despite shareholder approval.

Market impact: The media and entertainment sector is in flux as this megadeal progresses. Competitors may face increased pressure, while content creators could see new opportunities. Regulatory scrutiny could delay the deal's closure, impacting both companies' stock prices and merger & acquisition activity in the sector.

What to watch next: The official U.S. antitrust decision, expected soon, will confirm or deny the reported near-approval. Additionally, European regulatory bodies' assessments will determine if the deal faces further hurdles. Lastly, WBD's Q2 earnings, due in August, will provide insight into the company's financial health ahead of the merger's completion.