The U.S. Justice Department has completed its investigation into Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, determining that the merger is not likely to harm competition or consumers. The antitrust division stated that the merger could enhance competition in the media and entertainment sectors, benefiting American consumers and workers.
Paramount Skydance, led by David Ellison, reached an agreement to acquire Warner Bros. Discovery in late February after negotiations and a competing bid from Netflix. The companies argue that the merger will promote industry growth and provide consumers with more content by potentially combining the HBO Max and Paramount+ libraries. Critics, however, express concerns about further consolidation in an already concentrated industry.
Regulators assessed the merger's impact on video streaming competition and concluded that it would likely create a stronger alternative to larger streaming services. They also found that platforms like YouTube and TikTok do not serve as competitive substitutes under established antitrust laws.
Regarding linear television, the merger is not expected to negatively affect competition, as there is strong competition for live programming. Additionally, the regulators noted that the merger would not harm competition in film studio operations, citing extensive competition that has led to increased output and diversity in film offerings.
Despite the DOJ's findings, thousands of industry professionals have opposed the merger, citing concerns over job losses and reduced choices for filmmakers and audiences. California Attorney General Rob Bonta has announced that his state is investigating the transaction, and European regulators are also reviewing the deal, with a tentative deadline set for July 7. Paramount and Warner Bros. aim to finalize the merger by the third quarter of this year, with a compensation plan for shareholders if the acquisition does not close by September 30.