The $110 billion union of the parent companies of CBS Sports and TNT Sports drew much closer to reality Friday, as the U.S. Department of Justice gave its blessing to Paramount’s planned takeover of Warner Bros. Discovery.
Three and a half months after the deal first came together in the wake of Netflix’s exit, the DOJ’s Antitrust Division gave its approval to the highly controversial pact.
“The division has completed its analysis of the proposed merger of Paramount and Warner Bros. and determined based on the evidence received in its investigation that the transaction is not likely to result in harm to competition or American consumers,” the DOJ said in a statement.
The assent is a major step forward in the transaction and brings it much nearer to closing by the end of September—as has been Paramount’s intent—and perhaps within about a month.
Should that happen, bringing together TNT Sports and CBS Sports will create a sports media colossus with live rights in nearly every major sport and U.S.-based pro league, with a notable exception of the NBA.
“This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment,” Paramount said.
Politically, it’s hardly a surprise that the DOJ approved the deal. U.S. President Donald Trump has exerted considerable control over the department, despite its historic mandate for independence, and he also had a direct role in last year’s merger between Paramount and Skydance Media.
Paramount CEO David Ellison, meanwhile, has forged a close relationship with Trump—only burnished further with Sunday’s UFC Freedom 250 from the White House South Lawn that will be streamed on Paramount+.
More Hurdles to Overcome
The deal must still receive blessing from several other entities, including the Federal Communications Commission, the European Commission, and U.K. regulators.
Attorneys general from several U.S. states, most notably California, are still weighing challenges to the pact as well.
Last month, six U.S. senators sent a letter to the FCC, arguing that the significant amount of foreign money involved in the deal raised significant national security risks. The sovereign wealth funds of Saudi Arabia, Qatar, and the United Arab Emirates are putting $24 billion of funding toward the deal.
“This is terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay,” said Sen Elizabeth Warren (D., Mass.) about the DOJ approval. “The Paramount-Warner Bros. Deal has reeked of corruption and influence-peddling. This fight isn’t over. State AGs must block this merger.”
WBD shareholders approved the deal in April.
