Justice Department Approves Paramount-Warner Deal
LOS ANGELES (KESQ) - The Justice Department today approved Paramount Skydance's proposed acquisition of Warner Bros. Discovery, paving the way for a merger that would unite two of Hollywood's most storied studios and significantly reshape the entertainment industry.
The DOJ said in a statement Friday that "the transaction is not likely to result in harm to competition or American consumers, including with respect to: (1) streaming video on demand ("SVOD"); (2) linear television; and (3) studio development, production, or distribution of films for theatrical release."
The estimated $110 billion transaction would combine Paramount Pictures and Warner Bros., studios whose histories span more than a century. The combined company would also include the Paramount+ and HBO Max streaming services, the CBS broadcast network and cable channels including CNN.
"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,'' Paramount said in a statement.
David Ellison, chief executive officer of Paramount Skydance, has previously said the merger would honor the legacy of both companies while creating a next-generation media and entertainment business. Ellison is the son of Oracle co-founder Larry Ellison.
The deal has faced opposition from some entertainment industry professionals and elected officials who argue it would further consolidate ownership in the media industry.
More than 1,000 entertainment professionals signed an open letter in April opposing the merger, contending it would reduce competition at a time when the industry is already highly concentrated.
Sen. Elizabeth Warren, D-Massachusetts, criticized the reported approval on social media, calling it ``terrible news for every American'' and urging state attorneys general to block the transaction.
The merger could still face legal challenges. California Attorney General Rob Bonta has said his office is investigating the proposed deal, while reports indicate New York Attorney General Letitia James' office is also participating in the review.
European Union regulators are separately reviewing the transaction because of financing from Middle Eastern sovereign wealth funds.
According to securities filings, Paramount said the acquisition is backed in part by Saudi Arabia's Public Investment Fund, Abu Dhabi's L'IMAD
