Paramount wins over DOJ staff on Warner Bros. takeover
Paramount appears to have swayed US Department of Justice (DOJ) staff regarding its proposed $110 billion takeover of Warner Bros. Discovery. Paramount CEO David Ellison reiterated a commitment to theatrical movie releases, addressing concerns from Hollywood talent and California's attorney general about the merger's potential impact on film distribution and jobs. While talks are ongoing, DOJ staff seemed receptive to arguments that the deal would not harm the industry, distinguishing it from Disney's past post-acquisition streaming-focused strategy.
Key Takeaways
- Paramount’s $110 billion Warner Bros. Discovery bid was discussed in a two-hour meeting Tuesday at the Justice Department.
- DOJ antitrust staff questioned David Ellison on whether the combined company would send fewer movies to theaters.
- Ellison reiterated a commitment to theatrical releases, and Paramount said it would release 30 movies a year after the merger.
- The meeting included acting antitrust chief Omeed Assefi, and officials discussed Disney’s 2019 Fox deal as a comparison.
- California attorney general Rob Bonta has said he will investigate the merger on anticompetitive grounds.
Why It Matters
The immediate implication is that DOJ staff now appear less skeptical of Paramount’s $110 billion Warner Bros. Discovery takeover, though talks are still ongoing and the department’s analysis could change. The competitive issue is theatrical supply: Hollywood talent, California attorney general Rob Bonta, and DOJ staff all focused on whether the merged company would steer more films to streaming, unlike Disney after Fox. The next signal to watch is whether the DOJ’s internal view holds after further meetings and whether Paramount can keep defending its promise of 30 movie releases a year.
Read full article at semafor.com
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