**State antitrust litigation remains the dominant barrier to closing the Paramount Skydance–Warner Bros. Discovery merger by December 31, 2026.** A coalition of 12 state attorneys general filed suit in July 2026 alleging the $110 billion deal would reduce competition in film distribution, cable, and streaming. A federal judge issued a temporary restraining order, prompting Paramount to agree in late July to postpone closing until the earlier of five days after a court ruling or June 1, 2027. The antitrust trial is now scheduled for March 2027, well beyond year-end. While the DOJ and European Commission have approved the transaction and additional clearances (Mexico, Turkey) have followed, the states’ case continues with stalled settlement talks and ongoing discovery. A ticking fee begins after September 30, 2026, but the extended litigation timeline and explicit 2027 outside date make completion inside the current calendar year improbable under current conditions. Trader sentiment reflects these procedural realities rather than speculation about ultimate approval.