The Department of Justice gave its official blessings to Paramount Skydance’s acquisition of Warner Brothers Discovery, a $110 billion deal that has caused much speculation and consternation in Hollywood and the greater entertainment industry, as well as raised questions about the future of WBD properties in Atlanta.
The merger has rekindled fears of a contracting entertainment industry, with job losses and fewer production/distribution avenues for content creators cited as a possible result of this merger.
“The Division has completed its analysis of the proposed merger of Paramount and Warner Bros. and determined, based on the evidence received in its investigation, that the transaction is not likely to result in harm to competition or American consumers,” said the DOJ in a statement. The merger was cleared without any limitations or spin-off requirements.
Although the deal has cleared a major hurdle with the DOJ’s decision, it’s not out of the woods yet. Several states, including California, are reviewing the deal and could file lawsuits challenging the merger.
If the challenges fail, the merger will bring together Paramount Skydance, which owns the Paramount Film Studio, CBS Television, several TV stations, including Atlanta CBS O&O WUPA, and cable networks MTV, VH1, BET, Showtime, and Comedy Central, with WBD, which owns the Warner Bros. film studio, cable nets HBO, Discovery, OWN, HGTV, and Atlanta-based interests CNN, TNT, TBS, and Cartoon Network. Both companies own lucrative sports contracts. Paramount’s CBS has deals with the NFL, NCAA, and more. WBD has several NBA and NCAA basketball contracts, and Atlanta is where many of those sports programs are produced.
Paramount Skydance is owned by David Ellison, whose father, Larry Ellison, is an ally of President Donald Trump.
In Atlanta, where most of the WBD properties are formerly owned by Ted Turner’s company and reside in the Techwood Drive campus in Midtown Atlanta, it remains unclear what will become of these interests after the merger is cleared. More than 3000 employees work in the Atlanta sector of WBD, mostly in technical and production operations. Some CNN staff still work on the Techwood property, although most of the CNN activity has long since relocated to New York City.
There has been rampant speculation that CNN would be consolidated with the NYC-based CBS News, which could eliminate the need for any Atlanta presence for the network, if this is indeed the plan.
Paramount thanked the DOJ’s decision in a statement.
“This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment,” said the Paramount spokesperson. “We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators, and the entertainment industry as a whole.”
David Ellison has said he expects the deal to close by September.
