The planned takeover of Warner Bros. Discovery by Paramount has cleared an important hurdle in the USA.
The US Department of Justice cleared the merger without any conditions. According to the authority’s assessment, neither competitive disadvantages nor negative effects for consumers are to be expected – both in the television and streaming business and in the area of film production.
However, the approval process has not yet been completely completed. According to the AWP news agency, antitrust audits continue to be ongoing in several US states and in other regions outside the United States, including Europe.
Billion dollar deal after bidding competition
The family of the software entrepreneur is behind Paramount Larry Ellisonwho is considered a supporter of US President Donald Trump. Netflix originally reached an agreement to acquire Warner’s streaming and studio business last year. However, Paramount submitted a higher offer and ultimately secured the contract for the entire Warner Bros. Discovery group, including television networks such as CNN.
The transaction volume is around $111 billion.
Discussion about the future of CNN
In the USA, the change of ownership is sometimes viewed critically. Opponents of President Trump are expressing concern that the news channel CNN could lose editorial independence under the Paramount umbrella. The background is the fear that developments that were observed after other media companies were taken over by billionaires close to Trump could be repeated.
After AWP, Trump emphasized several times that if Warner were to be sold, it would be particularly important to him that CNN also change ownership. Reference is also made to changes at the Paramount broadcaster CBS. After the Ellison family took over, there was more friendly reporting about the Trump administration. The well-known news program “60 Minutes” also fired several correspondents, some of whom had complained about political pressure.
Paramount strengthens its position in Hollywood
Paramount is run by David Ellison, the son of Larry Ellison and a film producer. With the takeover, the company aims to significantly expand its position in Hollywood.
For Paramount, the merger gives it access to some of the industry’s best-known entertainment brands. Warner Bros. Discovery includes, among other things, the DC universe with characters such as Superman and Batman, the Harry Potter film series and a strong streaming business around the pay channel HBO.
Julia Walter, editorial team at finanzen.net
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