US approval of Paramount/Warner Bros. deal surprised DOJ lawyers, report says
6 hours ago
- #DOJ-investigation
- #media-merger
- #antitrust
- The U.S. Department of Justice approved Paramount Skydance's acquisition of Warner Bros. Discovery after an eight-month antitrust investigation, concluding it wouldn't harm competition or consumers.
- DOJ career lawyers leading the investigation reportedly leaned toward recommending a lawsuit over competition concerns, but senior leaders closed the probe before staff could object, per The Wall Street Journal.
- Senator Elizabeth Warren raised concerns about potential political favoritism and corruption in the approval, calling for transparency.
- DOJ staff questioned how the merged company could meet its commitment to 30 annual theatrical releases due to increased debt, though senior leaders did not view debt as a reason to challenge the merger.
- The deal, valued at $111 billion, requires an FCC waiver due to equity stakes from Saudi, UAE, and Qatari sovereign wealth funds, with FCC Chairman Brendan Carr expressing support.