“Good” news, everyone: the Department of Justice has said it’s a-OK for Paramount to continue with the Warner Bros. merger!
On Friday, the department gave a thumbs up to the $110 billion acquisition that’s been in the works since earlier this year. According to the antitrust division’s reasoning is that TV and movie businesses are “not likely” to be harmed by this, and the same goes for American consumers. The agency’s statement runs counter to what many in the entertainment industry—and anyone who knows how mergers work—have been saying, and since there’s no concessions to be made, Paramount’s a little more free to have a monopoly on Hollywood. (Remember when the Department feared Netflix would do this if it got WB?)
In a statement, Paramount thanked the DOJ for its decision, reiterating that the deal was “pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms. […] We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators and the entertainment industry as a whole.”
Now, California and New York are looking to sue on antitrust grounds to block the merger. Overseas, the European Commission has until July 14 to investigate the deal and the $24 billion in funds coming from the sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi, and the UK’s Competition and Markets Authority issued its own investigation earlier this week. In the US, Massachusetts senator Elizabeth Warren condemned the approval, deeming it “terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay. The Paramount-Warner Bros. deal has reeked of corruption and influence-peddling. State AGs must block this merger.”
We’ll have more on the merger in the weeks ahead.
Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.
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