Justice Department clears way for Paramount Skydance to buy Warner Bros. Discovery
Federal antitrust enforcers on Friday cleared Paramount Skydance’s $110 billion deal to buy Warner Bros. Discovery.
In a statement, the Department of Justice’s Antitrust Division said it had closed its probe of the acquisition after determining that the transaction “is not likely to result in harm to competition or American consumers.”
“The extensive investigatory record reviewed by the division suggests that the impact of the transaction will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers,” it said.
Paramount Skydance, the parent company of CBS News, owns the Paramount studios and cable networks, including Comedy Central and Nickelodeon. Warner Bros.’ movie studio has produced hits such as the “Harry Potter” franchise and the company also owns cable networks including CNN, HBO Max, TBS and TNT.
In a statement, Paramount said, “This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment. We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators, and the entertainment industry as a whole.”
The Justice Department’s decision to close its investigation into the deal removes a major obstacle to Paramount Skydance’s acquisition of Warner Bros.
The transaction still faces potential legal hurdles from multiple state attorneys general who have threatened to challenge the deal.
The takeover has also drawn criticism from some lawmakers and prominent figures in Hollywood, who contend that merging two of the largest U.S. entertainment companies could result in lower pay for actors, writers and other movie industry professionals.
“This is terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay,” Massachusetts Sen. Elizabeth Warren said in a statement on social media. “The Paramount-Warner Bros. deal has reeked of corruption and influence-peddling. This fight isn’t over. State AGs must block this merger.”
Paramount Skydance clinched a deal for Warner Bros. earlier this year after outdueling Netflix, which had bid $83 billion.
