Key Highlights
- “These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”CBS News and CNN staffers fear ‘disaster’ as Paramount wins Warner Bros battleRead moreAny acquisition of Warner Bros would require approval from regulators in the United States and Europe, including the US justice department’s antitrust division.
- The deal Paramount struck for Warner is valued at nearly $111bn. The merger poses a risk for California’s economy.
- Paramount’s bid is likely to raise concerns about job cuts in the state, which also dogged Netflix’s bid.
- Paramount sees $6bn in cost “synergies” in the deal, which typically means massive layoffs, reducing the number of suppliers, squeezing existing contractors for better terms after the two companies merge or other reductions. The chief executive of Paramount, David Ellison, said his company was pleased the Warner Bros board had “unanimously affirmed the superior value of our offer”, which he said delivered “WBD shareholders superior value, certainty and speed to closing”.
- Ellison is the son of Oracle co-founder Larry Ellison, a close ally of Donald Trump. On Friday, Warner Bros Discovery reportedly agreed to be acquired by Paramount Skydance.
