Hollywood puts pressure on Paramount Skydance deal
Add Axios as your preferred source to
see more of our stories on Google.
Photo: Justin Sullivan/Getty Images
The chorus of voices opposing Paramount Skydance's $110 billion takeover of Warner Bros. Discovery is growing louder.
Why it matters: It will likely be up to state attorneys general and foreign regulators to challenge the merger, and there are indications that both groups are ready to act.
Driving the news: Over 1,000 Hollywood professionals, including more than 75 Academy Award winners and nominees, on Monday released an open letter that said, in part:
- "The integrity, independence, and diversity of our industry would be grievously compromised" if the deal closes.
- Their argument should be well-received by California Attorney General Rob Bonta, whose department already opened an investigation.
The other side: Paramount in a statement on Monday reiterated its commitment to full theatrical releases "ensuring creators have more avenues for their work, not fewer."
Zoom in: Paramount needs regulatory approval from dozens of countries where it operates, plus big blocks like the European Union.
- U.K. antitrust regulators are set to launch an official probe into the deal after it finishes receiving public comments at month's end.
- The U.S. Justice Department is probing the merger, but antitrust experts don't expect it to object.
The big picture: The DOJ could still sue to block the merger, but it becomes harder to do so now that Paramount has closed the deal.
- Case in point: A U.S. judge ordered a pause on the $6 billion+ local broadcast merger between Nexstar and Tegna while he deliberates issuing an injunction in response to a lawsuit from DirecTV and several U.S. states.
- Just two weeks after the deal closed, Nexstar said in response to the order that the merger can't be fully undone.
The bottom line: Longer approval processes overseas could give the state attorneys general more time to assemble their cases.
