Justice Department Explains Why It Cleared Paramount-Warner Bros. Deal: “Not Likely To Result In Harm To Competition Or American Consumers”

The Justice Department said that it concluded that Paramount‘s proposed acquisition of Warner Bros. Discovery was “not likely to result in harm to competition or American consumers,” citing their review of the streaming, linear television and theatrical release marketplaces.

In a statement, the DOJ noted the multiple transaction in which Warner Bros. has been an acquisition target.

“The legacy of these transactions illustrates the challenges that arise when the commercial rationale for a deal lacks clear alignment with competitive incentives of the acquiring firm or the competitive evolution of the marketplace. In technology-driven industries, the disruptors of the recent past may quickly become the entrenched monopolists of the present day,” per the statement from the Antitrust Division. “It is with this historical experience and present enforcement sensitivity to the contestability of dynamic markets that the Division conducted a thorough investigation of the proposed transaction to assess whether the proposed transaction presented any harm to competition. The extensive investigatory record reviewed by the Division suggests that the impact of the transaction will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”

The DOJ said its investigative efforts “all led to the same conclusion: the film and television industry is highly dynamic, and the proposed transaction is not likely to harm competition or American consumers.”

More to come.

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