In wild news, the massive merger between Paramount and Warner Bros. has been approved by the DOJ without any concessions necessary to gain this regulatory approval. Although it seemed like the Netflix bid to acquire Warner Bros. has been well and truly dead, it comes as a massive shock that no major amendments were required of the proposed (nearly) $111 billion purchase. This merger creates, in essence, a super-powered studio. And while Paramount views the deal as pro-competitive—to those in the entertainment industry, it seems like a massive shifting of power. In sum, this deal allows Paramount to acquire the Warner Bros. movie studio, CNN, HBO, and other Warner Bros. Discovery properties.
A Paramount spokesperson shared the following with Deadline about the Warner Bros. acquistion, “We are grateful for the Department of Justice’s thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date. This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment. We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators, and the entertainment industry as a whole.”
The DOJ noted that the merger between Paramount and Warner Bros. “is not likely to result in harm to competition or American consumers, including with respect to: (1) streaming video on demand (“SVOD”); (2) linear television; and (3) studio development, production, or distribution of films for theatrical release.”
Meanwhile, state attorneys general in California, New York, and other states are considering an antitrust lawsuit, but whether that would be enough to slow or end the deal is unclear.
In all, it’s hard to know what the best options for consumers, the people who matter most to us at Nerdist, might be. But ultimately, the continued consolidation of our networks, studios, and news channels into the hands of only a few remains alarming. We want our media to reflect many voices and perspectives, not be streamlined to the will of just a handful. We’ll see what comes of this union between Paramount and Warner Bros.