WSJ: Justice Department Decision to Allow Paramount Deal Surprised Staff Investigators
Senior DOJ officials said the $110 billion deal is unlikely to harm competition or consumers after staff had leaned toward suing.
- The Justice Department cleared the $110 billion Paramount-Warner Bros Discovery merger, determining the transaction was unlikely to harm competition after completing its Hart-Scott-Rodino review.
- Career investigators had spent eight months scrutinizing the deal and leaned toward recommending a lawsuit, but senior officials signed off after Paramount CEO David Ellison addressed staff questions about releasing 30 films annually.
- Beyond federal clearance, the Australian Competition and Consumer Commission granted approval subject to a 14-calendar-day waiting period expiring June 23, while Paramount faces a $7 billion termination fee if regulatory matters block the deal.
- On Friday, California Attorney General Rob Bonta said the merger is "not a done deal and remains under investigation" by the California DOJ, as state AGs prepare potential legal action this month.
- The European Commission and United Kingdom regulators are concurrently reviewing the deal, with the EC setting a July 7 deadline to decide on a Phase 2 investigation as companies aim to close by Sept. 30.
18 Articles
18 Articles
‘Reeks of Corruption’: Top DOJ Officials Reportedly Cleared Paramount-Warner Bros. Merger Before Staff Lawyers, Who Were ‘Leaning’ Toward Antitrust Lawsuit, Could Object
Top Justice Department officials moved to drop the antitrust investigation into Paramount’s $111 billion takeover of Warner Bros. Discovery before the team of lawyers investigating the matter could issue a recommendation, the Wall Street Journal reported. The career lawyers in the DOJ’s Antitrust Division had been “leaning” toward advising that the department should file a […]
Antitrust Staffers Shocked By DoJ Approval For Paramount Deal
The Justice Department’s senior leadership closed an investigation of Paramount’s bid for Warner Bros. Discovery before career staffers who were concerned about the acquisition had an opportunity to object, according to people familiar with the matter who spoke to the Wall Street Journal. Gee, I wonder how that happened? A team of career lawyers who had spent months scrutinizing the deal were leaning toward recommending a lawsuit challenging it …
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