Two rival bids for Warner Bros. Discovery are on the table – a $108 billion bid from Paramount and an $83 billion offer from Netflix. The outcome is uncertain, with the Trump administration likely to review both proposals under antitrust laws.
The review process could take several months to over a year. Government officials will assess market share and competition, as well as potential impact on content distributors like movie theaters. If the merger is deemed anti-competitive, a settlement or lawsuit may ensue.
Netflix has studios and buys projects, raising concerns about pricing and creators’ access. Paramount’s smaller streaming audience might lessen regulatory scrutiny. However, Paramount’s own movie studio poses a risk of decreased competition for content production.
The Trump administration retains flexibility to consider issues beyond competition, including agreements on new outlets like CNN. The president’s direct involvement in the decision-making process is unusual, but grants leverage to extract concessions from the buyer.
The review process and potential outcomes create uncertainty around the Warner Bros. Discovery merger.
Source: https://abcnews.go.com/Business/bids-warner-bros-discovery-face-uncertain-trump-approval/story?id=128204415