The owner of TVN will be taken over. The transaction is under the microscope of the US authorities
This is a transaction worth approximately USD 110 billion that would combine two large film studios, streaming platforms and the information activities of Warner Bros. Discovery and Paramount Skydance.
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Takeover of the owner of TVN. Antitrust control is gaining momentum
The department's actions show that the investigation into the potential effects of this merger is accelerating. Officials are analyzing, among others: the impact of the transaction on film and television production, content rights, competition between streaming platforms and possible effects on cinemas.
Requests to submit documents are a standard tool in such proceedings and do not determine the final decision. However, if the Department of Justice considers that the merger restricts competition, it may attempt to block it or enforce certain conditions.
The head of the department's antitrust division, Omeed Assefi, quoted by Reuters, emphasized that the transaction will not be treated favorably and “certainly” will not receive accelerated approval for political reasons.
Paramount, in turn, emphasizes that it expects detailed analyzes from regulators around the world.
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Other institutions are also dealing with the matter. The European Commission is in talks with third parties, Canada is analyzing the impact of the transaction on the market, and the Attorney General of California is also collecting information.
Concerns about the market and jobs
One of the main problems is the risk of limiting competition – especially the number of potential buyers of films and series.
Paramount estimates that thanks to the merger, it will achieve approximately USD 6 billion in savings, which often means reducing employment. However, the company indicates that it is mainly about optimizing technology and real estate.
Trade unions, including Teamsters, warn that the merger may pose a direct threat to jobs and they are calling for it to be blocked or safeguards introduced.
