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Paramount Skydance\u2019s $108bn bid to gatecrash Netflix\u2019s deal for Warner Bros Discovery has cleared a key US antitrust hurdle, in a signal of support from the Trump administration. <\/p>\n
The media group, whose bid is bankrolled by Oracle billionaire and Donald Trump donor Larry Ellison, said on Friday that its deal had complied with the US Department of Justice\u2019s second request review process, removing a critical impediment to US regulatory approval.<\/p>\n
By allowing the 10-day statutory waiting period to elapse under the Hart-Scott-Rodino Act\u2019s second request process, the DoJ is in effect waving through the Paramount deal on antitrust grounds. <\/p>\n
\u201cThe expiration of the HSR waiting period means there is no statutory impediment in the US to closing Paramount\u2019s proposed acquisition of WBD,\u201d said Paramount in a regulatory filing. <\/p>\n
The swift antitrust clearance will probably be seen in the industry as a signal of support from the White House. It comes as allies of the president expand their sway across the US media landscape. <\/p>\n
The contrast with the scrutiny facing Netflix\u2019s bid may also reinforce perceptions that the administration is putting its thumb on the scale. <\/p>\n
However, the expiry of the HSR waiting period does not amount to formal approval, and does not preclude the government from suing to block a transaction at a later stage. <\/p>\n
US agencies have in recent years challenged deals ranging from JetBlue\u2019s proposed acquisition of Spirit Airlines to UnitedHealth\u2019s purchase of Amedisys after the HSR process had run its course.<\/p>\n