Paramount Accelerates DOJ Antitrust Review in Warner Bros. Takeover Battle
Paramount Skydance Corp. is intensifying efforts to secure Justice Department antitrust clearance for its tender offer to acquire Warner Bros. Discovery Inc. shares within the coming weeks, according to a Bloomberg report citing informed sources. The media conglomerate has been actively supplying all requested information to government regulators as it races against time in this high-stakes corporate showdown.
Regulatory Timeline and Strategic Implications
Completion of this regulatory review will trigger a mandatory 10-day waiting period during which the Justice Department must decide whether to challenge Paramount's proposal on competition grounds. Securing early regulatory approval represents a pivotal component of Paramount's strategy to derail Netflix Inc.'s planned $82.7 billion acquisition of Warner Bros.' studio and streaming divisions, which was agreed upon in December as an alternative to Paramount's competing bid.
If Paramount can successfully demonstrate it has overcome this significant regulatory hurdle, the company plans to immediately pivot to persuading Warner Bros. shareholders to reject the Netflix deal during the upcoming April vote. Warner Bros. Discovery intends to seek shareholder approval for the Netflix transaction by that month, creating a tight timeline for Paramount's counteroffensive.
Multifaceted Corporate Battle
Paramount has been pursuing a dual-track approach to circumvent the Netflix agreement, simultaneously appealing directly to Warner Bros. shareholders while aggressively lobbying regulatory bodies. The Justice Department's potential decision to sue and block the Netflix acquisition could dramatically improve Paramount's prospects of securing Warner Bros. without needing to enhance its existing $30-per-share all-cash offer, which values the company at approximately $108 billion.
A Netflix spokesperson responded to developments by stating the company expects Paramount will "self-declare" compliance with federal regulators while emphasizing Netflix's continued focus on "the value Netflix and Warner Bros. can create together."
Regulatory Landscape and International Scrutiny
The Justice Department is conducting thorough examinations of both the Netflix and Paramount proposals, with federal officials reportedly sending information requests to major Hollywood constituencies including talent agencies. It's important to note that Justice Department approval wouldn't constitute a final regulatory clearance for Paramount, as any subsequent alterations to key terms such as price or the eventual signing of a merger agreement with Warner Bros. would likely necessitate resubmission for DOJ review.
Both Paramount and Netflix face additional regulatory scrutiny beyond U.S. borders, with ongoing reviews proceeding in the European Union and United Kingdom, alongside examinations by various state attorneys general within the United States. Warner Bros. shareholders continue to anticipate that Paramount might increase its offer to remain competitive in this acquisition contest.
Corporate Perspectives and Industry Impact
Paramount has maintained its resistance to boosting its $108 billion bid for Warner Bros., consistently asserting that its proposal represents a superior alternative to Netflix's offer with greater likelihood of regulatory approval. Paramount CEO David Ellison has highlighted that combining Netflix, HBO, and Warner Bros. would establish the world's largest paid streaming company, a prospect that has generated significant concern within the entertainment industry.
The Netflix-Warner Bros. agreement has attracted substantial criticism, including bipartisan opposition expressed during a Senate hearing on February 3. Meanwhile, Warner Bros. and Netflix have expressed confidence in their ability to secure necessary approvals for their proposed merger while arguing that the Paramount alternative would prove more detrimental to Hollywood's competitive landscape. Both companies acknowledge that the Justice Department's comprehensive review is expected to extend through much of the current year.
