“Good” news for everyone: Department of Justice said Paramount could continue The merger of Warner Bros!
On Friday, the department backed the $110 billion acquisition that has been underway since the beginning of this year. According to the antitrust division’s reasoning, the television and film industries are “unlikely” to be harmed by this, as are American consumers. The agency’s statement contradicts why many in the entertainment industry— and anyone who knows how mergers workthey said, and since there are no concessions, Paramount is a little more free to have a monopoly on Hollywood. (Remember when the Department was afraid Netflix will do it when this is there a WB?)
In a statementParamount thanked the Department of Justice for its decision, reiterating that the deal was “pro-competitive, resulting in a stronger company to compete with dominant technology platforms. (…) We remain focused on completing the deal as quickly as possible and ensuring its benefits for consumers, creators and the entertainment industry as a whole.”
now California and New York are going to sue on antitrust grounds to block the merger. Abroad, the European Commission has until July 14 to investigate the deal and the $24 billion in funds coming from the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi, as well as UK Competition and Markets Authority released its own investigation earlier this week. In the United States, a senator from Massachusetts Elizabeth Warren condemned the approval, calling it “terrible news for every American who doesn’t want billionaires close to Trump to control what they watch and how much they pay. The Paramount-Warner Bros. deal reeks of corruption and influence peddling. State AGs should block this merger.”
We’ll learn more about the merger in the coming weeks.
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