US DOJ clears Paramount’s acquisition of Warner Bros
The U.S. Department of Justice’s Antitrust Division has approved Paramount Skydance Corp’s plans to acquire Warner Bros. Discovery, Politico reported, citing two people familiar with the matter.
The deal is valued at US$110 billion ($A156 billion).
Justice officials determined that the transaction did not pose a threat to competition, according to the sources.
Politico reported Friday, citing a source, that the department approved the merger without requiring any divestitures, behavioral remedies or concessions.
Paramount spokespeople and a DOJ spokesman declined to comment.
The permit gives Paramount another regulatory green light to signal as it tries to stave off a potential challenge to the deal from California and other states.
In April, Paramount also asked the Federal Communications Commission (FCC) to approve foreign investments supporting the acquisition. US senators have expressed concern about the participation of Middle East sovereign wealth funds and Chinese companies.
The FCC hasn’t made a decision yet. Analysts expected the Justice Department to not object to the deal due to Paramount’s political connections. Paramount CEO David Ellison’s father, billionaire Oracle co-founder Larry Ellison, has developed ties with President Donald Trump, and the company has hired former Trump officials.
Deputy Attorney General Omeed Assefi said politics would “absolutely not affect” the Justice Department’s review of the transaction.
Paramount argued that the deal had no antitrust issues and said the merger would increase competitive pressure on Disney and Netflix.
But many in Hollywood, including actors, directors, writers and producers, have expressed concern that the merger would lead to fewer jobs and less storytelling diversity.
California, New York and other US states are preparing a lawsuit to block the deal, sources familiar with the matter told Reuters last week.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
