DOJ Approval of Paramount/Warner Bros. Discovery Deal Reportedly Surprised Staff Lawyers
The U.S. Department of Justice (DOJ) recently approved Paramount Skydance's proposed $111 billion acquisition of Warner Bros. Discovery, citing an eight-month investigation that found no harm to competition or consumers. However, a report suggests that career antitrust lawyers at the DOJ were surprised by the decision, having reportedly leaned towards recommending a lawsuit to challenge the deal. Senator Elizabeth Warren (D-Mass.) commented on the report, questioning the approval process.
The U.S. Department of Justice (DOJ) gave its approval for Paramount Skydance's proposed $111 billion acquisition of Warner Bros. Discovery. A DOJ press release indicated that a "rigorous eight-month investigation led by the [Antitrust] Division’s career staff" concluded the deal would not negatively impact competition or American consumers.
Despite the official statement, The Wall Street Journal reported that the DOJ career lawyers who conducted the investigation were reportedly inclined to recommend a lawsuit. Their concern was that the merger of the two movie studios could be anticompetitive and potentially violate antitrust law.
The Wall Street Journal also reported that DOJ senior leaders concluded the investigation before the career staffers, who had concerns about the acquisition, had the chance to formally object. This account comes from individuals familiar with the matter.
Following the report that staff investigators were surprised by the decision, Senator Elizabeth Warren (D-Mass.) stated that "the American people need to know if this merger was approved as a political favor. This reeks of corruption."
According to Ars Technica, the US approval of the Paramount/Warner Bros. deal surprised DOJ lawyers, as reported by The Wall Street Journal. (Source: Ars Technica)
