Paramount’s US antitrust waiting period on WBD bid expires

LOS ANGELES: Paramount said on Friday that the US antitrust waiting period for its $108.4 billion all-cash bid for Warner Bros Discovery expired on 19 February, clearing an early procedural hurdle in its attempt to buy the owner of HBO Max.

The expiry of the 10-day waiting period under the Hart-Scott-Rodino Act means there is no statutory bar in the United States to closing the proposed transaction. It does not, however, bring regulatory scrutiny to an end.

The US Department of Justice can continue investigating the deal, seek additional information and still sue to block it before completion. In 2023, the department moved to stop JetBlue’s proposed acquisition of Spirit Airlines months after the waiting period had lapsed.

Complicating matters further, Paramount does not yet have a definitive agreement with Warner Bros Discovery. The studio group has separately entered into a deal with Netflix, which has offered $27.75 per share, valuing the studios and streaming assets at $82.7 billion.

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

Any Netflix-Warner Bros Discovery tie-up would itself face intense scrutiny from US and European competition authorities. These authorities would examine whether combining Netflix’s global streaming scale with Warner Bros Discovery’s century-old studio assets could curb competition or narrow consumer choice.