Paramount’s $110 billion bid to acquire Warner Bros. Discovery appears increasingly likely to clear federal regulators, with signals that the Department of Justice will not block the deal, the Financial Times reports.
Federal Communications Commission Chair Brendan Carr indicated the agency would not stand in the way of the transaction and minimized competition concerns surrounding the combination of CBS News and CNN.
“We’re looking at changes from a regulatory perspective to try to encourage more investing and more scale in broadcast,” Carr said, underscoring what he described as a broader effort to strengthen traditional media companies facing digital competition.
Carr, speaking at Mobile World Congress in Barcelona, acknowledged that “concerns [were] raised in Washington about the concentration of power” with respect the the Netflix bid, but argued that market-share issues tied to Paramount’s bid are “drastically different.”
Appointed in 2024 by President Donald Trump, Carr said the bulk of the antitrust review will be handled by the DOJ, while the FCC’s role will focus primarily on reviewing Paramount’s financing structure.
Carr suggested foreign-backed debt involved in the transaction qualifies as “bona fide debt” under FCC rules, meaning it would likely receive a streamlined review.
The proposed merger would combine two storied Hollywood studios, streaming platforms Paramount+ and HBO Max, and major television news networks CBS and CNN — a consolidation that has fueled concerns among some observers about media concentration and news impartiality at a politically sensitive time.
Paramount is led by CEO David Ellison, son of Oracle founder and longtime Trump supporter Larry Ellison.
he deal is backed by $47 billion in equity from the Ellison family and RedBird Capital Partners, along with tens of billions in debt financing. Middle Eastern sovereign wealth funds are participating but have agreed to forgo governance rights.
Trump, a frequent critic of CNN, is widely seen as having an interest in the outcome.
Columbia Law professor Reilly Steel suggested the administration’s posture could prove decisive, describing the dynamic as “anticipatory compliance.”
The Department of Justice did not immediately respond to a request for comment.
Further scrutiny may come from California Attorney General Rob Bonta, who has pledged a “vigorous” review.
If completed, the merger would consolidate ownership of two of the world’s five major film studios and leave Paramount facing a $7 billion breakup fee if the transaction collapses.
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