Paramount reportedly wants to acquire Warner Bros. Discovery, antitrust law be damned
Paramount Skydance, apparently now in a state of permanent merger, plans to make a bid to acquire Warner Bros. Discovery, The Wall Street Journal reports. The company was recently formed following Skydance's acquisition of Paramount for $8 billion. Newly anointed Paramount Skydance CEO David Ellison was able to afford the acquisition thanks to the backing of his billionaire father, Larry Ellison.
Despite Warner Bros. Discovery's public plans to split back into Warner Bros. and Discovery Global, "the bid will be for the entire company, including its cable networks and movie studio," the report says. A successful acquisition of the company will likely be very pricey. According to The Wall Street Journal, "Warner Bros.’s nearly $33 billion market cap is more than double that of Paramount Skydance."
Further consolidation in the entertainment industry will likely lead to less varied and interesting film and television, but a merger between Paramount Skydance and Warner Bros. Discovery could also concentrate even more power in the hands of the federal government.
Prior to the deal going through, CBS paid $16 billion to settle a lawsuit with Trump, which may have affected the President's stance towards the acquisition. Skydance's commitment to abandon DEI programs at CBS and make the television network "embody a diversity of viewpoints across the political and ideological spectrum" was also cited as justification for the FCC approving the acquisition. Following the deal, Paramount appointed Kenneth Weinstein as an Ombudsman to "review editorial questions and concerns from outside entities and employees." Weinstein previously served as an advisor to the Trump administration, Variety reports.
Fusing two giant Hollywood studios obviously impacts competition. The question now is how the FCC will respond to this possible acquisition, with even more money and power on the line.This article originally appeared on Engadget at https://www.engadget.com/entertainment/paramount-reportedly-wants-to-acquire-warner-bros-discovery-antitrust-law-be-damned-193306141.html?src=rss