The DOJ has issued subpoenas as part of an escalating antitrust investigation into the proposed $110 billion merger between Paramount Skydance and Warner Bros. Discovery, signaling heightened scrutiny of one of Hollywood’s largest-ever deals.
The probe focuses on how the acquisition could reshape the entertainment landscape, including its impact on studio output, content rights, competition among streaming platforms, and the future of movie theaters, according to sources familiar with the matter. Regulators are also examining whether the merger would reduce the number of buyers for films and television shows — a key concern for independent producers.
Reuters reports the Justice Department has made clear the deal will not receive preferential treatment. Acting Assistant Attorney General Omeed Assefi recently said the transaction would “absolutely not” be fast-tracked due to political considerations, underscoring the seriousness of the review.
Internally, Paramount has acknowledged the likelihood of global regulatory hurdles but remains committed to closing the deal quickly. The company has projected $6 billion in cost “synergies” — often interpreted as a signal of potential layoffs — though it says most savings would come from consolidating technology, real estate, and other corporate operations.
Industry stakeholders are increasingly voicing concern. The International Brotherhood of Teamsters warned the merger poses a “direct threat” to jobs and urged regulators to block the deal unless enforceable protections are implemented. Meanwhile, theater owners, represented by Cinema United, cautioned that past studio consolidations have typically resulted in fewer films being produced.