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Hollywood merger under microscope: US Justice Dept seeks info on Paramount‑Warner Bros deal


  • Studio output, content rights, streaming ​competition and movie theaters among DOJ concerns
  • EU, Canada, California are also engaging with other companies
  • Paramount has been expecting many jurisdictions to review ‌deal

    • WASHINGTON, March 28 â€" The US Department ​of Justice has sent subpoenas in its investigation of Paramount Skydance’s acquisition of Warner Bros Discovery, three sources familiar with the matter told Reuters. 

    The inquiries show the DOJ moving ahead with ​its probe into the US$110 billion (RM441.28 billion) acquisition that would combine the two major studios, along with the companies’ streaming platforms and news operations. 

    Hollywood and Wall Street are intensely interested in the deal, which could shrink jobs if it succeeds but cost Paramount US$7 billion (RM28.08 billion) if it is ‌blocked.

    The DOJ is seeking information on how the d eal would affect studio output, ⁠content rights and competition among streaming services, ⁠the sources said. 

    The DOJ is also ⁠asking how the acquisition could affect ⁠movie theaters, two ⁠of the sources said. 

    Acting Assistant Attorney General Omeed Assefi told Reuters in an interview last week that Paramount will “absolutely not” have a fast track to approval because ⁠of political factors.

    Paramount has been expecting authorities in many places to review the deal, Chief Legal Officer Makan Delrahim said at an antitrust conference in Washington on Wednesday.

    Representatives of the DOJ, Paramount and Warner Bros did not immediately respond to requests for comment.

    The European Commission is actively engaging with third parties ⁠on the deal, two sources said. Canada has also reached out to at least one company about the deal, one of the ⁠sources said. 

    The California Attorney General’s office has also been eager to speak with third ⁠parties, the ⁠other two sources said. 

    Paramount fought aggressively to wrest the deal from Netflix and has ​bet on closing the deal quickly, promising ​to pay Warner Bros shareholders a 25-cent-per-share ‌quarterly “ticking fee” starting in October if the ​deal has not closed. â€" Reuters

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