Politico and other media outlets report that the Justice Department’s Antitrust Division has approved Paramount Skydance’s $111 billion bid for Warner Bros. Discovery.
The merger will see Paramount Skydance take over all of WBD networks, including Warner Bros. Studios, HBO and the HBO Max Streaming service which will eventually be integrated into Paramount+ to create roughly 200 million subscribers.
Warner Bros Discovery’s two major entertainment and sports networks – TBS, TNT, along with their HBO Max streaming service, is the current home to AEW’s weekly TV shows – Dynamite and Collision, with HBO Max housing all of AEW’s video library and offering the promotion’s pay-per-view’s at a discounted price for subscribers.
Politico notes that following an extensive review, DOJ officials determined the buyout did not pose a threat to competition and declined to challenge it, said the people, who were granted anonymity to discuss sensitive matters. It was added that according to “one of the people”, the DOJ approved the merger “without requiring any divestitures, behavioral remedies or concessions.”
However, California Attorney General Rob Bonta has been reviewing the details of the merger and could still sue to block the deal despite approval of federal regulators.
“The merger of Warner Bros and Paramount remains under investigation by the California Department of Justice,” said a spokesperson for Bonta’s office.
In a letter to Bonta last month, Paramount Chief Legal Officer Makan Delrahim urged the state not to challenge the transaction, firmly stating the deal is pro-competitive because it would create a stronger streaming rival to Netflix while expanding theatrical releases and investment in film production.
Politico further notes that 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.