The future of TVN is entering a decisive phase. Following approval from U.S. authorities for the acquisition of Warner Bros. Discovery by Paramount Skydance, the $110 billion media deal is one step away from completion. However, the final say will still rest, among others, with the European Commission.
The U.S. antitrust division concluded that the merger of the two media giants would not lead to reduced competition in the streaming platform, television, or film production markets. According to the “Wall Street Journal”, the decision surprised some of the lawyers involved in analyzing the case. Experts assessing the transaction for months had reportedly leaned toward challenging the deal in court, pointing to the risk of excessive concentration in the film market.
TVN Part of the Deal, Further Approvals Already Granted
Approval from the United States significantly brings David Ellison closer to acquiring another major media conglomerate within two years, following Skydance’s earlier takeover of Paramount. As part of the transaction, assets of Warner Bros. Discovery across various markets, including TVN, will also come under the control of the new group.
Previously, WBD shareholders approved the merger, and the company has already secured regulatory clearance in, among others, Ukraine, Saudi Arabia, Germany, Belgium, Italy, and France.
Brussels Examines Middle Eastern Financing
The European Commission’s decision now remains crucial. As reported by “Variety”, EU officials are analyzing the transaction both in terms of its impact on competition and its compliance with regulations on foreign subsidies.
Particular scrutiny surrounds approximately $24 billion in financing provided by state funds from Saudi Arabia, Qatar, and the United Arab Emirates. Investors from the region are expected to hold a 49 percent stake in the new structure; however, under the agreement, they will not receive voting rights or seats on the board. Decisions from Brussels are expected by July 7 and 14, respectively.
Democrats in the U.S. Still Considering a Lawsuit
The process could also be delayed by a potential complaint from attorneys general in Democrat-led states, including California and New York. California Attorney General Rob Bonta announced that his office is still examining whether the planned merger complies with U.S. antitrust law.
Hollywood Concerned About Impact of New Media Giant
From the outset, part of the film industry has opposed the deal. Critics argue that the merger of two major players could lead to job cuts, a reduction in the number of films and TV series produced, and further consolidation of the streaming market.
Controversy has also been fueled by potential political implications related to the acquisition of CNN by an entity linked to the Ellison family, which is perceived as being close to Donald Trump.
Paramount Skydance Aims to Close Deal in July
According to the industry outlet “Status”, the management of Paramount Skydance hopes to finalize the acquisition by July 15, although the official closing date has been set for September 30.
If the merger is not completed by then, Warner Bros. Discovery shareholders will receive an additional $0.25 per share for each subsequent quarter of delay. The agreed purchase price for WBD shares stands at $31, with the total value of the transaction estimated at approximately $110 billion.