Key insights
- The DOJ's antitrust head stated that the Paramount-Warner Bros Discovery deal review will not be expedited due to political connections, countering analyst speculation. This suggests a potentially longer and more rigorous regulatory process, introducing uncertainty for the deal's timeline and potentially impacting the involved companies' stock performance.
By Jody Godoy
WASHINGTON, March 18 (Reuters) - Paramount Skydance's proposed acquisition of Warner Bros Discovery will "absolutely not" have a fast track to approval because of political factors, the head of the U.S. Department of Justice's antitrust division told Reuters in an interview on Wednesday.
"The idea that somehow enforcement has been politicized is ludicrous," said Acting Assistant Attorney General Omeed Assefi, who declined to comment on ongoing probes.
Analysts have viewed Paramount as facing an easier road to regulatory clearance in the U.S. in part because of its political connections. Paramount CEO David Ellison's father, billionaire Oracle co-founder Larry Ellison, has cultivated ties with President Donald Trump.
"Absolutely not," Assefi said in response to a question about whether Paramount would receive an easier way through deal review because of political factors.
"I think even Ted Sarandos has been very vocal about the fact that he had a very open and fair and thorough review under us," Assefi said, referring to the CEO of Netflix.
Netflix's competing bid for Warner Bros' studio and streaming assets was under review by the DOJ until it walked away from the deal rather than match Paramount's offer.
Paramount maintains that its deal poses fewer problems for competition than Netflix's bid. California Attorney General Rob Bonta has said the state is probing the transaction.
(Reporting by Jody Godoy in Washington; Editing by Howard Goller)