The Justice Department will not challenge Paramount’s merger with Warner Bros. Discovery, clearing a major hurdle for the $111 billion deal, the agency said Friday.
The merger would consolidate the ownership of two major movie studios; two major streaming services, Paramount+ and HBO Max; and two prominent television news networks under the leadership of the tech scion David Ellison.
The Justice Department’s investigation of the deal, the agency said, included hours of depositions, interviews and meetings that “all led to the same conclusion: the film and television industry is highly dynamic, and the proposed transaction is not likely to harm competition or American consumers.”
The deal has raised concerns that it could reduce the number of buyers for TV and movie scripts and potential employers for actors and crew members, driving down wages and the prices paid for creative material. The Justice Department blocked a publishing deal in 2022 over similar claims.
The Justice Department may not be the final obstacle for Paramount. Some state attorneys general have pledged to take a hard look at the deal, and could make their own legal challenge.
The merger has attracted public scrutiny because of President Trump’s ties to Mr. Ellison and his father, Larry Ellison, the founder of Oracle. Larry Ellison is friendly with Mr. Trump, and has pressed the case for Paramount’s ownership of Warner Bros. Discovery with the president.
In April, as the Justice Department was reviewing the deal, Paramount hosted a dinner where Mr. Trump sat at the same table as David Ellison.
A spokeswoman for Paramount, Susan Friedman, said in a statement that the merger would result in a “stronger company” that could succeed “in an industry increasingly defined by intense competition for audiences, talent, technology and investment.”
- Credits: The New York Times
- Author: Lauren Hirsch, David McCabe and Benjamin Mullin
- Photo: Mark Abramson
