Justice Department Approves Paramount's $111 Billion Acquisition of Warner Bros.

The Justice Department has approved Paramount Skydance's $111 billion acquisition of Warner Bros. Discovery without requiring divestitures or other concessions. The deal still faces scrutiny from state attorneys general. Politico reports: The decision, expected to be announced Friday, paves the way for Paramount to combine with the entertainment and media company behind a vast film and television studio, CNN, and the HBO Max streaming service, which would be combined with Paramount+ to create a new offering boasting about 200 million subscribers. The deal, which would upend the Hollywood ecosystem by combining two historic rival studios, is opposed by many in the entertainment industry who fear it could lead to mass layoffs, among other concerns.

After an extensive review, DOJ officials determined the transaction did not pose a threat to competition and declined to challenge it, said the people, who were granted anonymity to discuss sensitive matters. The department approved the merger without requiring any divestitures, behavioral remedies or concessions, according to one of the people. [...] The DOJ's approval does not end the merger's legal scrutiny. California Attorney General Rob Bonta has been reviewing the transaction and could still sue to block the deal despite federal regulators signing off. A spokesperson for Bonta's office told POLITICO earlier this week "the Paramount acquisition of Warner Brothers remains an active investigation."

[...] Throughout those discussions, Paramount maintained that the merger would strengthen competition rather than diminish it, creating a media company better positioned to compete with streaming leaders and deep-pocketed technology rivals, according to people familiar with the matter. Hollywood workers fear the merger could trigger another wave of layoffs in an industry already reeling from years of consolidation. Critics argue that billions in promised cost savings will come at the expense of jobs, fewer opportunities for creators and greater concentration of power across film, television and streaming.

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