Paramount Skydance is trying to acquire Warner Bros. Discovery (WBD), and there’s a lot happening behind the scenes. The U.S. Justice Department has cleared Paramount’s deal from an antitrust view, but that doesn’t mean the acquisition is a sure thing. David Ellison’s company has struggled to finalize this deal, and for now, WBD is sticking with Netflix.
Recently, the Justice Department’s waiting period expired after Paramount provided the necessary information. This means there’s no legal barrier to closing the deal in the U.S., according to Paramount. However, Netflix isn’t convinced. Their legal officer, David Hyman, pointed out that just because the waiting period is over doesn’t mean Paramount has the green light. He believes Paramount is misleading investors, as they still lack the necessary approvals.
Interestingly, Paramount admits in their filing that they don’t yet have an agreement to buy WBD. They mentioned several hurdles remain, including a definitive merger agreement and regulatory approvals.
Adding to the drama, a group of Democratic senators, led by Sen. Cory Booker, raised concerns about potential political interference in the acquisition. They’ve asked Paramount to keep all records related to their dealings with the Trump administration regarding WBD. This may complicate things further for Paramount.
On the business side, WBD has a confirmed $83 billion deal with Netflix, which includes Warner Bros. studios and HBO Max. WBD is set to hold a special shareholder meeting on March 20 to vote on this Netflix agreement.
Despite Paramount’s efforts, WBD has turned them down multiple times since Ellison first showed interest last September. Netflix has emerged as the favored partner through the merger and acquisition review process.
Recently, WBD opened a short window for discussions with Paramount to clarify their bid. This talks window ends on February 23. Afterward, WBD is scheduled to discuss its fourth-quarter earnings. If Paramount raises its bid, Netflix has a chance to respond within days.
Currently, WBD remains committed to their Netflix deal and has urged shareholders to support it at the upcoming meeting.
The situation around these acquisitions highlights how rapidly the media landscape is changing, especially with the rise of streaming services. More than ever, companies are vying for dominance, and negotiations are often influenced by political and regulatory landscapes.
If you’re interested in the evolving media landscape and its implications, check out more insights from industry analysts here.
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Justice Department,Paramount Skydance,Warner Bros. Discovery
