The U.S. Justice Department will not stand in the way of the Paramount merger with Warner Bros. Discovery, clearing a major hurdle for the transaction to be completed.
The DOJ announced on Friday that it’s eight-months review of the deal is complete, and it will not challenge the merger, stating that “the transaction is not likely to result in harm to competition or American consumers.”
The news was reported by Politico:
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 merger still has to clear legal scrutiny with California State attorneys general Rob Bonta suggesting the possibility of litigation options to block the deal based on antitrust violations.
In a letter to Bonta last month, Paramount Chief Legal Officer Makan Delrahim urged California not to challenge the transaction, arguing that the deal is pro-competitive because it would create a stronger rival to Netflix while expanding theatrical releases and investment in film production.
Representatives for roughly half a dozen state attorneys general, including Bonta and New York Attorney General Letitia James, listened in on the meeting between Ellison and DOJ officials.
The deal is also under review in the U.K. and Europe.
If completed, Paramount would control CBS, Paramount Pictures, Warner Bros. Pictures, CNN, TNT, TBS, HBO, HBO Max, and Paramount+ among its properties.
Additional information: Variety, New York Times
