US approval of Paramount/Warner Bros. deal surprised DOJ lawyers, report says
Summary
The US Department of Justice (DOJ) approved Paramount Skydance’s $111 billion deal to buy Warner Bros. Discovery after an eight-month review. Some career DOJ lawyers reportedly wanted to sue to block the deal, saying it could reduce competition, but senior DOJ leaders approved it before formal objections were made.Key Facts
- The DOJ said the deal would not harm competition or consumers after a lengthy investigation.
- Career DOJ lawyers leaned toward challenging the merger for possible antitrust violations.
- Senior DOJ leaders ended the review before career staff could formally object.
- Senator Elizabeth Warren questioned if the approval was influenced by political favors.
- Paramount CEO David Ellison met with DOJ leaders and addressed their concerns.
- The merger involves funding from sovereign wealth funds of Saudi Arabia, UAE, and Qatar, requiring an FCC waiver.
- Warner Bros. had earlier agreed to merge with Netflix but criticized Paramount’s bid as risky due to high debt.
- The DOJ’s antitrust division leadership recently changed, with the new acting head denying political influence on the deal’s approval.
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