The Justice Department’s senior leadership closed an investigation of Paramount’s bid for Warner Bros. Discovery before career staffers who were concerned about the acquisition had an opportunity to object, according to people familiar with the matter who spoke to the Wall Street Journal.
Gee, I wonder how that happened?
A team of career lawyers who had spent months scrutinizing the deal were leaning toward recommending a lawsuit challenging it on the grounds that the combination of the two movie studios would be anticompetitive and violate antitrust law, the people said.
The staff investigators hadn’t yet made a final recommendation—a typical step in the deal-review process—and were told Friday that the department would close the investigation, effectively clearing the deal at the federal level, some of the people said.
The Justice Department’s senior leaders believed that Paramount Chief Executive Officer David Ellison, son of Trump ally Larry Ellison, persuasively addressed many of the staff’s questions about the deal during a two-hour interview last month, according to people familiar with their thinking.
I wonder how much it cost for Larry to "persuade" officials? And was it in crypto?
Among staffers’ questions was how the combined company could meet its commitment to make 30 theatrical releases a year, given its increased debt load. The senior leaders allowed the inquiries but believed Paramount’s debt wasn’t a reason to challenge the merger, the people familiar with their thinking said. No one on the investigative team spoke up to leadership voicing support for filing a lawsuit, they said.
“The Antitrust Division conducted a thorough investigation to assess whether the proposed transaction would harm competition,” a Justice Department spokeswoman said. “The investigatory record indicated that the transaction will increase competition across the media and entertainment ecosystem, benefiting American consumers and workers.”
Pee on my leg and tell me it's raining!
https://bsky.app/profile/madmaudlin.bsky.social/post/3moe7ikxl6c2i
