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 services and news operations. Hollywood and Wall Street are intensely interested in the high-stakes deal, which would bring together some of the entertainment industry’s most enduring franchises but deal a blow to film and television jobs.
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.
Doing a superficial investigation and report on the acquisition will cement it against challenge by states and future federal administrations.
Not that any Democratic administration has the balls to invoke Antitrust provisions in a material way (or, at least, a way courts won’t immediately block). But someone in TrumpWorld might be savvy enough to do enough ass-covering to avoid the tail risk.