The DOJ’s decision follows a “rigorous eight-month investigation” that reviewed over two million documents from both companies and heard input from third parties. Despite the approval, the deal continues to face opposition from Hollywood writers, unions, and several government officials. Moreover, reports suggest that California and New York are exploring legal options to challenge the merger on antitrust grounds.
Merger Faces Pushback Despite DOJ Approval
Critics argue that combining two major media companies could lead to huge job losses and further hurt competition in an entertainment industry already under pressure. They also warn that the merger could limit opportunities for writers, producers, and creative professionals.
However, the DOJ stated that “the substantial body of evidence available to the Division indicates that the transaction is not likely to harm competition in studio development, production, or distribution of films for theatrical release.”
On June 9, the Australian Competition and Consumer Commission (ACCC) approved the merger, subject to the expiration of a 14-calendar day waiting period on June 23. Meanwhile, the European Union continues to review the deal, particularly its financial backing from Middle Eastern sovereign wealth funds.
