May 26 (Reuters) – U.S. antitrust regulators appear ready to approve Paramount’s $110 billion takeover of Warner Bros. Discovery, after a two-hour meeting at the Justice Department, Semafor reported on Tuesday, citing people familiar with the matter.
At the meeting, Paramount CEO David Ellison reiterated a commitment to releasing movies in theaters, the report said.
According to the report, the Department of Justice staff attorneys seemed swayed by arguments from top Paramount executives that the deal would not hurt other studios and creative talent.
Reuters could not immediately verify the report. The DOJ, Paramount and Warner Bros. did not immediately respond to requests for comment outside regular business hours.
Hollywood and Wall Street are intensely interested in the high-stakes deal, which would bring together some of the entertainment industry’s most enduring franchises but could hurt film and television jobs.
The DOJ in March sent subpoenas in its investigation of Paramount’s acquisition of Warner Bros., seeking information on how the deal would affect studio output, content rights, competition among streaming services, and how the acquisition could affect movie theaters.
Top Hollywood stars have also opposed the merger. Jane Fonda, J.J. Abrams and Mark Ruffalo are among the nearly 3,500 signatories to a letter that argued the combination would lead to fewer opportunities for creators, job losses and higher costs for consumers.
Paramount pushed hard to take the deal away from Netflix and has bet on closing it quickly, pledging to pay Warner Bros. shareholders a quarterly “ticking fee” of 25 cents per share starting in October if the deal has not closed by then.
(Reporting by Angela Christy in Bengaluru; Editing by Muralikumar Anantharaman and Mrigank Dhaniwala)
Comments