Paramount Clears Early Antitrust Hurdle in High-Stakes Warner Bros Battle

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The legal fight between Paramount and Warner Bros. Discovery regarding antitrust issues has reached a crucial point. However, even with some initial progress, the outcome is still uncertain.

Paramount Skydance has passed the first hurdle in its plan to buy Warner Bros. Discovery for $77.9 billion, receiving approval from the Justice Department after a waiting period. While this is a positive step, it doesn’t guarantee the deal will ultimately be approved.

In reality? It’s a little more complicated.

Paramount Clears Early DOJ Hurdle

As a supporter, I’m really glad to hear that Paramount has cleared a major hurdle with the Justice Department! From what I understand – according to Bloomberg – they’ve finished the detailed review process required by the Hart-Scott-Rodino Act and there are no legal roadblocks left in the US. This is great news and means they can move forward!

The required waiting period has now expired.

Simply put, Paramount has met an initial requirement in the government’s review of its proposed deal. The Justice Department requested more details – a standard step called a “second request” – and Paramount has provided everything asked for and completed the waiting period without an immediate attempt to block the merger. Importantly, this doesn’t mean the deal is approved. Regulators can continue to investigate or even try to prevent the merger from happening, but Paramount has successfully passed an important first hurdle.

Paramount clarified that simply meeting the deadline for review doesn’t mean the merger is officially approved. The Department of Justice has blocked similar deals in the past, even after this initial step was finished.

In other words, Paramount has cleared an early checkpoint — not the finish line.

Netflix Fires Back

Now that Netflix has an agreement to buy Warner Bros.’ studio and streaming services for $72 billion, they quickly disputed how Paramount was presenting its recent win.

Netflix’s top lawyer, David Hyman, stated that Paramount Skydance is misinforming investors and diverting attention from the truth. He clarified that reaching standard regulatory milestones doesn’t mean the deal has been approved by the Department of Justice, nor has any decision been made. He emphasized that Paramount Skydance still needs to obtain necessary approvals to finalize the deal and is currently far from achieving that.

This situation shows what many people have been thinking: Paramount has made some progress, but the legal battle is far from over.

Lawmakers Raise Red Flags

To make things even harder for Paramount, politicians in Washington are already expressing doubts about the company’s future plans.

Senators Cory Booker, Chuck Schumer, and Elizabeth Warren, along with other Democrats, wrote to Paramount CEO David Ellison to express concerns that the proposed deal could be heavily investigated.

The senators expressed concern that the deal could create unfair competition, and they noted that the Senate hasn’t been able to review it yet.

The language used is significant. It doesn’t necessarily mean regulators will take action, but it definitely shows the deal is receiving political scrutiny.

The Netflix Deal Still Looms

The legal issues surrounding Paramount are becoming more complex now that Warner Bros. Discovery has made a deal with Netflix.

Recently, Warner agreed to talk to Paramount again after Paramount increased its offer to buy the company, suggesting they could go as high as $31 per share.

Warner Bros. Discovery has told Paramount Global it needs their final offer by February 23rd. This creates a critical moment that could significantly change the entertainment industry.

Why Regulators Are Still Watching Closely

Despite the waiting period being over, Paramount still has several areas where it could face scrutiny from regulators.

A Paramount-Warner combination would likely draw scrutiny over:

  • Consolidation of major Hollywood studios
  • Combined distribution leverage
  • The impact of merging major news assets like CBS and CNN

However, Netflix’s competing offer also creates worries, especially the possibility of Netflix and HBO Max – two major streaming services – merging together.

Federal officials are currently carefully examining both proposals. They’re talking with movie theaters and people in Hollywood to understand how these proposals might affect the film industry.

This type of activity usually means regulators are concerned and are starting to investigate.

Paramount’s Real Strategy

Paramount’s focus on getting approval seems intended to reassure Warner Bros. shareholders just as much as it is to satisfy regulators.

Paramount is emphasizing its past success with antitrust issues to suggest its deal will face fewer regulatory hurdles than Warner’s planned Netflix acquisition, which shareholders will vote on March 20th.

Whether that narrative holds up under closer scrutiny remains to be seen.

The Bottom Line

The Paramount antitrust fight is entering its most volatile phase.

Yes, Paramount cleared an early procedural hurdle. But major questions remain:

  • The DOJ can still sue to block the deal
  • Lawmakers are already raising alarms
  • International regulators have yet to weigh in
  • Warner shareholders haven’t made their decision
  • Netflix is still firmly in the fight

For Paramount, the message right now is that momentum is building — but victory is nowhere close.

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2026-02-21 01:58