The US Department of Justice unexpectedly approved the Paramount-WBD…

The US Department of Justice unexpectedly approved the Paramount-WBD merger after reviewing it with its staff. On last Friday, the DOJ deemed the deal would not harm competition or consumers.

Consensus

• The U.S. Department of Justice approved the $110 billion merger between Paramount Skydance and Warner Bros. Discovery
• The deal was investigated for eight months for potential impacts on streaming, traditional television, and the film industry
• The merger was valued at $81 billion, with an additional $29 billion in debt
• Paramount's CEO David Ellison met with DOJ officials and reportedly convinced them of the deal's benefits
• The DOJ stated that the merger would not harm competition or consumers

Points of divergence

• Some DOJ employees recommended opposing the deal due to concerns over reduced competition and antitrust violations — vedomosti
• Some DOJ employees had not yet submitted their final recommendations when the deal was approved — interfax
• The DOJ's position changed after a two-hour meeting with David Ellison — vedomosti
• The DOJ's position changed after a two-hour meeting with David Ellison, who is the son of Larry Ellison, a Trump supporter — interfax
• Netflix was considered a potential bidder but did not increase its offer to match Paramount's — vedomosti
• The California Attorney General may challenge the deal in court — interfax