Paramount Hostile Bid Under Review by DOJ
The Hollywood Reporter••business
Key Points:
- The Justice Department has expanded its antitrust review of David Ellison’s hostile tender bid for Warner Bros. Discovery, signaling potential regulatory challenges regardless of the deal's outcome.
- Warner Bros. Discovery disclosed that the DOJ has requested additional information, indicating a comprehensive investigation into the competitive effects of the proposed acquisition.
- Paramount maintains its $30 per share all-cash tender offer is superior to Netflix’s $82.7 billion deal, citing a more certain and expedited approval process, despite the Warner Bros. Discovery board’s rejection.
- Both potential mergers face significant antitrust scrutiny: a Netflix acquisition could concentrate over 30% of the streaming market, while a Paramount deal would combine two of the five largest movie studios, raising competition concerns
