Paramount clears U.S. antitrust waiting period in $108.4 billion Warner Bros bid

Paramount’s U.S. antitrust waiting period for its proposed $108.4 billion all-cash bid for Warner Bros. Discovery expired on February 19, clearing a procedural step in its effort to acquire the owner of HBO Max, as per Reuters.

The expiration “means there is no statutory impediment in the U.S. to closing Paramount's proposed acquisition of WBD,” referring to the end of the 10-day waiting period under the Hart-Scott-Rodino Act. However, it noted that the move does not conclude the U.S. Department of Justice’s review of the transaction.

The Justice Department can continue investigating the deal, request additional information and potentially file a lawsuit to block the transaction before it is completed. In 2023, the department sued to stop the proposed JetBlue-Sprint merger months after the waiting period had expired.

Paramount does not currently have a definitive agreement with Warner Bros. Discovery. The media company has signed a separate deal with Netflix, which has offered to buy its studios and streaming assets for $27.75 per share, valuing the transaction at $82.7 billion.

“Paramount Skydance continues to mislead stockholders and distract from the facts,” David Hyman, Chief Legal Officer, Netflix, said. “They have not secured the approvals needed to close and they are a long way from doing so.”

The proposed Netflix transaction is also expected to face scrutiny from U.S. and European competition authorities, who will examine whether combining Netflix’s global streaming operations with Warner Bros. Discovery’s studio assets could reduce competition or limit consumer choice.