According to the Hollywood Reporter, the United States Justice Department has approved Paramount’s acquisition of Warner Bros. Discovery, giving the green light to the massive $111 billion deal on Friday.
The report also indicates that this approval marks a significant milestone for the acquisition, which was initially announced in February. Paramount outbid Netflix in a dramatic bidding war; while Netflix first proposed a deal to acquire Warner Bros., Paramount launched a hostile bid that prompted Warner Bros. Discovery to reopen negotiations with Paramount, ultimately leading to Paramount’s winning bid.
Importantly, the Justice Department’s approval does not require Paramount to make any divestitures, behavioral remedies, or concessions, as noted in a Politico report. Paramount was expected to navigate the approval process relatively smoothly, given its moderately favorable relationship with the current U.S. presidential administration.
However, this approval is not the only hurdle Paramount faces. The company must also secure approval from the FCC, the European Union, and customer stakeholders, among others. Additionally, a group of states, including California, is preparing a lawsuit to block the deal, which is expected to be filed this month. This group may include New York, Colorado, Oregon, Nevada, Washington, Connecticut, and Tennessee.
Furthermore, Warner Bros. Discovery serves as AEW’s broadcast partner, and Tony Khan has expressed optimism about Paramount’s acquisition, stating that he expects Paramount to support AEW “100%.”
