What Would an Antitrust Review Look Like for a Paramount-Warner Bros. Discovery Merger?

By Lucas Manfredi

In a letter to Warner Bros. Discovery’s board, David Ellison argued that Paramount would be the “best partner” to merge with, citing “significant (perhaps insurmountable) hurdles” for other potential acquirers due to their “dominant market positions.” But that doesn’t mean a Paramount-WBD deal would be without its own regulatory challenges.

Unlike Skydance’s acquisition of Paramount, an acquisition of Warner Bros. Discovery would not require a review by the Federal Communications Commission, as there is no required transfer of broadcast licenses. But a deal would still be subject to the same standard antitrust review that other bidders would face, not to mention the financial burden that comes with taking on Warner Bros. Discovery’s roughly $35 billion in debt.