The U.S. Justice Department has closed its investigation into Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, determining that the mammoth Hollywood media merger is not likely to harm competition in the industry or consumers.
The agency announced Friday that its antitrust division concluded the impact of the merger “will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”
Paramount Skydance, led by David Ellison, reached a deal to acquire Warner Bros. Discovery in late February, following months of negotiations and a rival bid from Netflix. The companies argue that the merger will foster industry growth and provide consumers with greater content access, particularly through the potential combination of HBO Max and Paramount+ libraries.
However, critics have voiced concerns about the implications of further consolidation in an industry already dominated by a few major players. Regulators specifically examined the potential market impacts on video streaming, concluding that the merger would likely enhance competition by offering a more robust alternative to existing large streaming services. They also noted that social media platforms offering video streaming, like YouTube and TikTok, are not considered direct competitive substitutes in this context.
Furthermore, the Justice Department found that the deal is unlikely to negatively affect competition in linear television, citing robust competition for live programming. Regarding competition in film production and distribution, regulators determined that combining two major studio operators would not harm the market, citing extensive competition that has led to a greater output and diversity of films.
Despite the Justice Department's findings, thousands of industry professionals, including actors, directors, and writers, have expressed opposition to the deal, anticipating potential job losses and reduced opportunities for filmmakers and audiences.
