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U.S. antitrust regulators appear ready to approve Paramount's $110 billion takeover of Warner Bros. Discovery after a two-hour meeting Tuesday at the Department of Justice (DOJ), according to Semafor.
Paramount CEO David Ellison reiterated a commitment to releasing movies in theaters during the meeting, people familiar with the matter told the outlet.
DOJ antitrust staff attorneys grilled Ellison on whether the combined company would be less inclined to send films to cinemas—a concern raised by Hollywood talent and California's attorney general, who could move to block the merger.
Staff attorneys—nonpolitical employees who have privately disagreed with Trump-appointed DOJ leadership over merger approvals in recent months—appeared persuaded by arguments from top Paramount executives that the deal would not hurt other studios or creative talent, people briefed on the meeting said.
Discussions, which included acting antitrust chief Omeed Assefi, touched on the fact that after Disney acquired Fox in 2019, it sent fewer films to theaters in favor of its own streaming service. Paramount officials, including Ellison, told the department that those figures were skewed by the pandemic years, when studios prioritized streaming over theatrical release.
Talks remain ongoing, and the department's analysis could change. A DOJ representative did not immediately respond to a request for comment. A Paramount spokesperson declined to comment.
The entertainment industry has expressed concern that the merger would result in fewer films being produced, fewer theatrical releases, and fewer jobs, as the combined company may shift more titles to streaming.
Critics remain skeptical of Ellison's pledge to release 30 movies annually once Warner Bros. Discovery and Paramount merge—more than the two studios have been releasing in recent years.
California Attorney General Rob Bonta has said he would investigate the merger.
States can challenge deals on anticompetitive grounds. Paramount legal chief Makan Delrahim, a former DOJ antitrust regulator, wrote to Bonta earlier this month stating that "theaters will continue to be an essential part of the moviemaking business and social fabric."
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