U.S. Department of Justice (US Justice Department) terminated the antitrust investigation as part of the acquisition of Warner Bros. Discovery Inc. by Paramount Skydance Corp. for $110 billion, including debt obligations. This is reported on the website of the American regulator.
The antimonopoly authority does not intend to require any changes to the terms of the deal, since the merger is "unlikely to harm competition or American consumers." The investigation was conducted for 8 months in parallel with an investigation by a group of state attorneys general in order to block the deal.
From the point of view of Paramount management, the deal "will benefit Hollywood and allow the combined company to compete more seriously with streaming services such as Netflix Inc., Amazon.com Inc. Prime Video and Alphabet Inc. YouTube».
The approval by the regulator is in line with the desire of the American administration to support the conclusion of settlement agreements and not to hinder mergers. At the same time, the deal is facing serious resistance from the US Democratic Party and many Hollywood representatives. Actors, directors, producers and screenwriters claim that the merger will lead to job cuts, increased production costs and limited choice for viewers.
The transaction is expected to be completed in the third quarter of 2026. Earlier, Paramount won the bidding from competitor Netflix Inc., agreeing to pay $31 per share. In addition, Paramount Skydance Corp. Netflix Inc. has paid a $2.8 billion penalty for terminating the agreement after Netflix refused to continue bidding for the acquisition of Warner Bros. studios. and the streaming business of HBO Max.
Paramount management expects that in 2026 the combined company's revenue will amount to $69 billion with net debt obligations of $79 billion. Paramount plans to raise $54 billion from Bank of America, Citigroup and Apollo Global Management Inc.
Warner Bros. Discovery, Inc. is an American multinational media and entertainment conglomerate headquartered in New York City (USA). The company was formed as part of WarnerMedia's divestment from AT&T and merger with Discovery Inc. in 2022. The company owns HBO, CNN, and Warner Bros. studios. for the production of films and TV programs. Debt obligations amount to $33.5 billion.
Paramount Skydance Corp. — an American multinational company and entertainment conglomerate. The company is headquartered in Los Angeles, California. The company includes four divisions — Paramount Skydance Studios, Paramount Streaming, Paramount Skydance TV Media and Paramount Sports Entertainment.
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