The U.S. Department of Justice has approved Paramount’s $111 billion acquisition of Warner Bros.
14 June 14:09
The Antitrust Division of the U.S. Department of Justice has approved Paramount Skydance’s proposal to acquire Warner Bros. Discovery for $111 billion. This was reported by POLITICO, according to "Komersant Ukrainian".
The decision, announced on Friday, paves the way for Paramount to merge with the entertainment and media company, which owns a massive film and television studio, CNN, and the streaming service HBO Max, which will be merged with Paramount to create a new offering with approximately 200 million subscribers.
In its statement, the Antitrust Division noted that following an eight-month review, “based on the evidence gathered during the investigation, it was determined that the deal is unlikely to harm competition or American consumers…” and, ultimately, may even strengthen it by creating a stronger competitor in the market. The agency reported that investigators reviewed over 2 million documents, conducted hours of witness interviews, and collaborated with state attorneys general before reaching their decision.
Paramount welcomed the decision, noting that the merger would create “a stronger company that will be better positioned to compete with the dominant technology platforms in the industry.”
The deal, which will transform Hollywood’s ecosystem by uniting two historic rival studios, has become one of the most closely watched media merger cases of the Trump administration. In addition, the father of Paramount CEO David Ellison, Oracle co-founder Larry Ellison, is a longtime ally of President Donald Trump.
The deal has already sparked resistance among many in the entertainment industry, who fear it could lead, among other things, to mass layoffs.
At the same time, the Justice Department’s approval does not end legal scrutiny of the merger. California Attorney General Rob Bonta stated that he continues to review the transaction and may still file a lawsuit to block the deal, despite approval from federal regulators. “The Warner Bros. and Paramount merger remains under investigation by the California Department of Justice,” a spokesperson for Bonta’s office said.
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