An investigation by the U.S. Justice Department into Paramount Skydance’s proposed acquisition of Warner Bros. Discovery has determined that the mammoth Hollywood media merger is not likely to harm competition in the industry or be harmful for consumers.The agency said Friday that it closed its probe into the deal, with regulators at its antitrust division concluding that the impact of the merger “will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”David Ellison’s Paramount Skydance reached a deal to acquire Warner Bros. Discovery in late February. Paramount’s victory came after months of negotiations and a rival bid by Netflix that ultimately fell short. Paramount was bought by Skydance last year. The companies contend that merging will be good for growth in the industry and give consumers access to more content, particularly if the HBO Max and Paramount+ libraries are combined. But critics have decried what further consolidation could mean in an industry already controlled by just a few major players.
Among the potential market impacts from the merger, regulators weighed whether the deal would hurt competition in video streaming. They concluded that the merger would likely increase competition by giving customers a more “robust competitive alternative” to larger video streaming alternatives.
