The U.S. film industry is undergoing a historic reshuffle.
On the 12th local time, the U.S. Department of Justice officially approved Paramount’s $111 billion (about RM450.4 billion) proposal to acquire Warner Bros. Discovery. This deal is expected to give rise to a brand new super streaming platform with around 200 million subscribers.
The U.S. Department of Justice stated that after an eight-month review by the antitrust division, it did not require any changes to this sensational deal, paving the way for one of the largest media mergers in recent years.
The Department of Justice's statement noted that the merger is unlikely to harm market competition or the interests of U.S. consumers, including in the areas of streaming video services, traditional television business, as well as film development, production, and distribution.
● Entertainment Industry Worried About Disrupting Hollywood Ecosystem
This battle for the film industry started at the end of last year, when Netflix once announced a high-priced bid to acquire Warner Bros. Discovery's film and streaming businesses. Paramount then made an even higher offer and successfully acquired the company, with Netflix also announcing it would not counterbid. Although Warner Bros. Discovery shareholders had voted to approve the deal in April this year, there are still many opposing voices within the entertainment industry, with concerns that the merger of these two historic studios could upend the Hollywood ecosystem, and even trigger large-scale layoffs.
Regarding this acquisition that will impact the U.S. film industry, market analysis pointed out that the deal has not been completely cleared of legal risks. Afterward, the California Attorney General's office confirmed that the California Department of Justice is still investigating the transaction, and that future state-level prosecutors may still bring legal challenges.