US approval of Paramount/Warner Bros. deal surprised DOJ lawyers, report says
Trump admin green-lighting $111B deal "reeks of corruption," Sen.
Trump admin green-lighting $111B deal "reeks of corruption," Sen. Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav When the US Department of Justice approved Paramount Skydance’s proposed acquisition of Warner Bros.
The short version
- Discovery on Friday, a DOJ press release said “a rigorous eight-month investigation led by the [Antitrust] Division’s career staff” showed that the $111 billion deal would not harm competition or American consumers.
- Commenting on the report that the decision to allow the deal surprised staff investigators, Sen.
- Elizabeth Warren (D-Mass.) wrote that “the American people need to know if this merger was approved as a political favor.
- This reeks of corruption.” Staff investigators hadn’t yet made a final recommendation to DOJ leaders but were questioning “how the combined company could meet its commitment to make 30 theatrical releases a year, given its increased debt load,” the WSJ wrote.
What the source reports
Even if DOJ staff investigators had submitted a formal recommendation to challenge the lawsuit in federal court, leadership could have rejected the recommendation and approved the deal anyway. Senior DOJ leaders “believed Paramount’s debt wasn’t a reason to challenge the merger,” the WSJ wrote. Federal Communications Commission Chairman Brendan Carr previously expressed support for the deal even though it needs an FCC waiver because it involves large equity stakes from the sovereign wealth funds of Saudi Arabia, the United Arab Emirates, and Qatar.
Why it matters
Ellison wins over Trump admin US Associate Attorney General Stanley Woodward Jr. questioned the WSJ article’s sources in a post directed at Journal reporter Sadie Gurman.
Summary by Nerd News Network. Read the full article at Ars Technica via the links above and below.