Key facts
- DOJ senior leadership closed an investigation into Paramount's bid for Warner Bros. Discovery before career staffers could object.
- Career staffers were reportedly concerned the $111 billion deal would be anticompetitive.
- Sen. Elizabeth Warren suggested the approval "reeks of corruption" and called for transparency.
- David Ellison, CEO of Paramount, reportedly met with DOJ leaders to address concerns.
- US states reportedly plan to file a lawsuit to block the merger.
- The DOJ stated the merger is expected to increase competition in the streaming video market.
The U.S. Department of Justice's senior leadership reportedly approved Paramount's proposed $111 billion acquisition of Warner Bros. Discovery, overriding concerns from career staffers who were leaning toward recommending a challenge on antitrust grounds. According to The Wall Street Journal, the investigation was closed before these staffers could formally object.
Senator Elizabeth Warren has voiced strong criticism, suggesting the approval may have been a political favor and "reeks of corruption." Staff investigators had reportedly questioned the combined company's ability to maintain 30 theatrical releases annually due to increased debt.
DOJ senior leaders, however, believed Paramount's debt load was not a sufficient reason to block the merger. Paramount CEO David Ellison, son of Trump ally Larry Ellison, reportedly addressed many of the staff's questions during a meeting with DOJ leadership.
Despite federal approval, the deal faces potential challenges from U.S. states, which reportedly plan to file lawsuits, and scrutiny from European Union regulators regarding financing and competition impacts. The DOJ, in its approval announcement, stated the merger is expected to enhance competition in the streaming video market.