The approval from the DOJ is a crucial development for Paramount's proposed acquisition of Warner Bros. Discovery, which is valued at approximately $110 billion. Despite this milestone, the deal is not without potential hurdles, as it may encounter legal challenges from state attorneys general, including California's AG Rob Bonta.
Paramount's stock rose about 4% in after-hours trading following the news. The acquisition, which aims to consolidate assets including major cable networks and the HBO Max streaming platform, has already received shareholder approval from Warner Bros. Discovery.
Paramount's CEO, David Ellison, indicated that the deal is on track to close by September, after which a 'ticking fee' will increase the cost of the acquisition. Additionally, while the DOJ has given its nod, Paramount is still awaiting regulatory approval from European authorities, with a review process already underway and a deadline set for July 14.
The deal has also been approved by the Australian Competition and Consumer Commission, further indicating international regulatory support