politics
US justice department approves $111bn merger of Paramount and Warner Bros Discovery
Deal still under UK scrutiny with new investigation, and could face lawsuit from state attorneys general
TL;DR
- The US Department of Justice has approved the $111bn merger of Paramount Skydance and Warner Bros Discovery.
- The DOJ concluded the merger is unlikely to harm competition in streaming, linear television, or film production/distribution.
- The UK's Competition and Markets Authority (CMA) has opened an investigation into the merger's potential impact on competition in the UK.
- European regulators are also investigating the funding behind the merger, which includes $24bn from Gulf sovereign-wealth funds.
- Australia has already approved the deal, determining it's unlikely to lessen competition in theatrical film distribution.
- Critics, including Free Press and Senator Elizabeth Warren, argue the merger will undermine competition, destroy jobs, and slant news coverage.
- There are concerns among journalists at CBS News and CNN about potential job cuts and editorial reorientation.
- A coalition of US state attorneys general may file a lawsuit to block the merger, with California's AG indicating it remains under investigation.
- Paramount states the deal is pro-competitive and will create a stronger company better positioned to compete.