US sends subpoenas in Warner-Paramount antitrust review as probe picks up steam

The U.S. Department of Justice has sent subpoenas in its investigation of Paramount Skydance's acquisition of Warner Bros Discovery, three sources familiar with the matter told Reuters.

The inquiries show the DOJ moving ahead with its probe into the $110 billion acquisition that would combine the two major studios, ‌along with ⁠the companies' ⁠streaming platforms and news operations. Hollywood and Wall Street are intensely interested in the deal, which could shrink jobs if it succeeds but cost Paramount $7 billion if it is blocked.

The DOJ is seeking information on how the deal would affect studio output, content rights and competition among streaming services, the sources said. The DOJ is also ⁠asking how ‌the acquisition could affect movie theaters, two of the sources said.


Acting Assistant Attorney General Omeed Assefi told Reuters in ⁠an interview last week that Paramount will "absolutely not" have a fast track to approval because of political factors.

Paramount has been expecting authorities in many places to review the deal, Chief Legal Officer Makan Delrahim said at an antitrust conference in Washington on Wednesday.

Representatives of the DOJ, Paramount and Warner Bros did not immediately respond to requests for comment.

The European Commission is actively engaging ‌with third parties on the deal, two sources said. Canada has also reached out to at least one company about the deal, one of ⁠the sources said. The California Attorney General's office has also been eager to speak with third parties, the other two sources said.

Paramount fought aggressively to wrest the deal from Netflix and has bet on closing the deal quickly, promising to pay Warner Bros shareholders a 25-cent-per-share quarterly "ticking fee" starting in October if the deal has not closed.