The US Justice Department on Friday approved Paramount’s acquisition of Warner Bros. Discovery without demanding any changes to the controversial $110 billion (€95 billion) deal.
At the conclusion of an eight-month review, officials said antitrust regulators found no evidence that a massive merger between the two former rivals would harm consumers.
Paramount’s acquisition of Warner Bros. is expected to “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.” The Justice Department said in a statement.
Paramount has argued that the new, combined media company will be able to combine the streaming libraries of HBO Max and Paramount+, providing more value to users. They also claim that the merger will put additional pressure on streaming platforms like Disney+ and Netflix to survive.
What have the opponents of the merger said?
However, many Hollywood directors and actors are opposing the merger as a sign of further consolidation of power in the American entertainment industry, which is already dominated by a few large companies.
Free speech activists also point to Paramount’s ties to the Donald Trump administration. Paramount Skydance is led by David Ellison, son of tech giant Larry Ellison, one of the richest people in the world and a close ally of Trump.
The company has hired former members of the Trump administration, including a senior antitrust official and a White House counsel.
Could the Paramount-Warner Bros. merger still happen?
The Warner Bros. acquisition would also give Paramount ownership of CNN, a US-based global broadcaster that frequently criticizes the US president.
Paramount already owns CBS, another major US news broadcaster, which is currently headed by Bari Weiss. Weiss has been accused of trying to influence coverage in Trump’s favor.
However, even after getting the green light from the US Justice Department, the merger could still be thrown out in court. California, New York and several other US states are preparing to file a lawsuit against the deal, according to a source cited by Reuters news agency.
Across the Atlantic, EU officials are still considering accession, with a decision possible in July. UK markets regulators also aim to publish a decision based on a preliminary investigation by early August.
Edited by: Carl Sexton
Don’t let algorithms hide news. If you rely on our team for reliable reporting, please take a moment Choose us as your preferred source on Google by clicking here And press the “Star” or “Favorite” button, so you always see our verified news first.