LightShed partner Rich Greenfield analyzes the Paramount Skydance-Warner Bros deal in ‘The Claman Countdown.’
The Department of Justice (DOJ) on Friday announced that it has closed its antitrust investigation into Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, concluding that the transaction will not harm competition or American consumers.
The Antitrust Division said its eight-month review examined more than 2 million documents and found that the deal would strengthen competition across the media and entertainment industry, including video streaming, traditional television and theatrical film distribution.
“The extensive investigative record reviewed by the Division suggests that the effect of the transaction will be to increase competition across media and entertainment, with benefits for American consumers and workers,” the department said.
The DOJ said the combined company would continue to compete with major streaming rivals including Netflix, Amazon and Disney and found no evidence that the transaction would reduce consumer choice.
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The merger was approved by the Department of Justice on Friday. (Eric Thayer/Bloomberg via Getty Images)
The department also revealed that regulators reviewed a separate proposal involving Netflix before Paramount reached a definitive agreement with Warner Bros. Discovery.
According to the DOJ, examining both proposals gave investigators competing views on the future of the media industry.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| PSKY | PARAMOUNT SKYDANCE CORP. | 10.47 | -0.02 |
-0.19% |
| WBD | Company DISCOVERY INC. | 26.98 | +0.12 |
+0.45% |
| NFLX | Company NETFLIX INC. | 80.34 | -0.93 |
-1.14% |
This decision received criticism from Sen. Elizabeth Warren, D-Mass., urged state lawmakers to continue fighting the project.
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“This is bad news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay,” Warren wrote in X.
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Netflix agreed last year to acquire the film and television studios of Warner Bros. Discovery and streaming platform HBO Max in a cash and stock deal worth $27.75 per Warner Bros. share. Discovery. (Photos by Anna Barclay/Getty Images)
Warren also accused the merger of “corruption and human trafficking” and called on federal officials to block the deal.
State attorneys general retain independent authority under antitrust laws, and the DOJ’s decision does not preclude additional legal challenges to the proposed transaction.
The merger still faces several hurdles to reach completion. (Photos by Mario Tama/Getty/Getty Images)
The merger still faces several steps before completion.
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Paramount announced on Friday that it has extended a credit exchange and tender offer in connection with Warner Bros.
Discovery also said it expects the offering to remain on schedule for its expected closing. The company also cautioned that the acquisition remains subject to closing conditions and other risks.
