Warner Bros. Discovery $WBD jumped about 11% yesterday.

Paramount Skydance reached an agreement with California and other states that had tried to block the merger. That removed one of the last major obstacles to a deal worth roughly 110 billion dollars.

In exchange, Paramount had to promise a few concessions, such as further investments in film production in the US and certain protections for the editorial independence of CNN and CBS. But for WBD shareholders, the main thing now is that there is a slightly better chance the whole deal actually gets closed.

And that is exactly why the stock went up so much. The fewer legal issues remaining around the deal, the more WBD's price can approach what shareholders should receive under the transaction.

With WBD, it's probably not so much about how the next quarter of HBO Max or a new movie turns out. Much more is being discussed about whether this giant deal with Paramount really closes without another hitch.

Does anyone have WBD or Paramount in their portfolio?