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Paramount-Warner Bros Discovery merger faces state and EU scrutiny
A California suit and other state actions, plus EU skepticism, could delay the deal’s September target date, while a county estimate projects thousands of job losses.
A Paramount-Warner Bros Discovery merger is progressing, continuing a wave of consolidation in Hollywood after previous deals including Disney’s acquisition of 20th Century Fox and Discovery’s merger with Warner Bros, according to the Guardian Business.
The article says Warner Bros Discovery, which is described as carrying debt and depreciating cable TV assets, put itself on the market just three years after its last merger. It also notes that California and 11 other states filed suit to block the transaction even as it advanced through federal review.
The piece adds that the European Union is also looking skeptically at the deal, which could delay it beyond its September target date. It also cites a Los Angeles County estimate from the department of economic opportunity that projects potential job losses tied to a Warner-Paramount merger totaling about 6,000, with 2,495 in Los Angeles County.
The article further states that the Writers Guild of America is suing, arguing that if Paramount succeeds in buying Warner Bros, the merged company would become the largest buyer of original film and television programming in the United States, which it says would eliminate competition from a studio with more than a century of operations.