Warner Bros. Discovery Acquisition Reaches Key Milestone in the US
The US Department of Justice (DOJ) has cleared the proposed acquisition of Warner Bros. Discovery by Paramount Skydance, according to a source cited by CNBC. This approval represents a significant step forward for the transaction, valued at about $110bn, although certain state attorney generals may still pursue legal challenges. The DOJ is expected to formalize its decision shortly.
The deal, which has already received approval from Warner Bros. Discovery shareholders, must still be finalized before a September deadline to avoid a clause that would increase the acquisition cost. In February, Paramount submitted a bid of $31 per share to acquire the group's entire operations, including CNN, TBS, Warner Bros. studios, and the HBO Max streaming platform. News of the US agreement supported Paramount shares, which rose approximately 2% in after-hours trading on Wall Street on Friday.
However, the project remains subject to review by other regulatory authorities. The European Commission opened its preliminary investigation this week and is scheduled to issue an initial decision by July 14. Paramount also said that it has secured approval from the Australian Competition and Consumer Commission, continuing the international validation process for the transaction.
Paramount Skydance Corporation is one of the world's leading media and entertainment groups. The company's activities are organized around 4 divisions:
- film and television content production: feature films, animated films, television series, animated series, documentaries, etc. These activities are carried out through Paramount Pictures, Paramount Animation, Skydance Animation, Skydance Media, Skydance Productions, Skydance Sports, SHOWTIME/MTV Entertainment Studios, BET Studios, Awesomeness, Paramount Players, See It Now, CBS Studios, and Nickelodeon Studios.
- subscription and free streaming: video-on-demand (films, series, TV programs, etc.), real-time broadcasting of sporting events, concerts, etc. via the Paramount+, Pluto TV and BET+ streaming platforms;
- development of video games and immersive content: Skydance Games and Skydance Interactive;
- TV channel broadcasting: operation of Paramount Television, CBS Television Network, CBS Stations, and Skydance Television stations.
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