US Justice Department clears Paramount Skydance and Warner Bros. merger
AP News • • business
Key Points:
- The U.S. Justice Department’s antitrust division has closed its investigation into Paramount Skydance’s proposed $81 billion acquisition of Warner Bros. Discovery, concluding the merger is unlikely to harm competition or consumers.
- Regulators found the deal would likely increase competition in video streaming by providing a stronger alternative to larger platforms, and determined that social media streaming services like YouTube and TikTok are not direct competitive substitutes.
- The merger is not expected to negatively impact competition in linear television or the film industry’s studio development, production, and distribution, with regulators citing ongoing extensive competition and diversity in film offerings.
- Despite regulatory approval from the Justice Department, the merger still faces scrutiny from other U.S. regulators, including California’s Attorney General, as well as European and U.K. authorities, with reviews expected to conclude by mid to late 2024.
- Paramount Skydance CEO David Ellison has pledged to maintain Warner Bros. and Paramount as separate studios and release 30 combined films annually, though significant job cuts due to duplication are anticipated, drawing opposition from industry professionals and lawmakers.