Well, the Justice Department’s Antitrust Division has approved Paramount Skydance’s $111 billion bid for Warner Bros. Discovery. Although it’s still not a done deal and there could be more legal challenges in store, this clears a significant regulatory hurdle for the takeover. Paramount was given the green light without requiring “any divestitures, behavioral remedies or concessions.“
Paramount/Warner Bros.
In a statement, the DOJ’s Antitrust Division said, “The Division has completed its analysis of the proposed merger of Paramount and Warner Bros. and determined based on the evidence received in its investigation that the transaction is not likely to result in harm to competition or American consumers.“
Paramount Skydance added, “We are grateful for the Department of Justice’s thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date. 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.“
This deal will bring many assets under one roof, including CBS, CBS News, Paramount Pictures, Paramount+, HBO, HBO Max, Warner Bros. Pictures, CNN, TNT, TBS, HGTV, and more. Naturally, many are opposing the deal, and Sen. Elizabeth Warren (D-Mass.) is calling for the fight to continue. “This is terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay,” she said in a statement. “The Paramount-Warner Bros. deal has reeked of corruption and influence-peddling. This fight isn’t over. State AGs must block this merger.“
Hollywood Stars Oppose the Deal
A growing number of industry figures have come out against the merger of the two studios. An open letter opposing the merger has been written and posted on the site Blockthemerger.com.
“We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good. The integrity, independence, and diversity of our industry would be grievously compromised. […] Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement. Media consolidation has already weakened one of America’s most vital global industries—one that has long shaped culture and connected people around the world.“
Some of the stars who have signed the letter include JJ Abrams, Damon Lindelof, David Fincher, Denis Villeneuve, Adam McKay, Ben Stiller, Bryan Cranston, Catherine Keener, David Chase, Emma Thompson, Don Cheadle, James Schamus, Jane Fonda, Jason Bateman, Lin-Manuel Miranda, Noah Wyle, Tiffany Haddish, Mark Duplass, Joaquin Phoenix, Lily Gladstone, and more.
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