The Justice Department has issued subpoenas as part of its investigation into the massive $110 billion merger between Paramount Skydance and Warner Bros Discovery. Federal officials are examining how the deal would impact streaming competition, movie theaters, and content production in the entertainment industry.
Federal investigators have escalated their scrutiny of a massive entertainment industry merger by issuing subpoenas in their review of Paramount Skydance’s proposed takeover of Warner Bros Discovery, according to three sources with knowledge of the investigation.
The subpoenas signal that the Justice Department is advancing its examination of the $110 billion deal that would unite two entertainment giants, creating a combined entity that includes major film studios, streaming services, and news divisions. The proposed merger has captured significant attention from both Hollywood insiders and financial markets, as its approval could lead to workforce reductions while its rejection would cost Paramount $7 billion.
Federal officials are requesting detailed information about how the merger might impact film and television production levels, content licensing agreements, and rivalry between streaming platforms, sources revealed. Additionally, investigators are examining potential effects on movie theater operations, according to two of the sources.
When contacted for comment, a Justice Department representative did not provide an immediate response.
During an antitrust conference held in Washington on Wednesday, Paramount’s Chief Legal Officer Makan Delrahim indicated that the company had anticipated regulatory scrutiny from multiple jurisdictions regarding the proposed acquisition.
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