Department of Justice Reviewing Paramount’s Warner Bros. Discovery Bid
The Department of Justice’s Antitrust Division has issued a request for additional information as part of a review of Paramount’s $108.4 billion tender offer for all of Warner Bros. Discovery.
According to a regulatory filing published by WBD on Wednesday, the Federal Trade Commission confirmed that Paramount Skydance filed its required notification and report forms with the agency and the DOJ on Dec. 8.
The initial waiting period for the DOJ’s review was scheduled to expire on Dec. 23 at 11:59 p.m. ET. However, the agency has issued “requests for additional information or documentary material relevant to the Offer,” which extended the waiting period deadline to 11:59 p.m. ET 10 calendar days after Paramount “certifies substantial compliance with such request.”
In addition to filing for Hart-Scott-Rodino (HSR) approval with U.S. regulators, Paramount previously said it announced its case to the European Commission, opening the path to pre-notification discussions. Paramount has said it expects a deal with WBD to close within 12 months.
A DOJ spokesperson did not immediately return TheWrap’s request for comment.
The regulatory update on the Paramount bid comes as Warner Bros. Discovery has rejected its revised offer. Despite the eighth rejection, Paramount is holding firm at its $30 per share offer, which has been taken directly to WBD shareholders.
As of Dec. 19, less than 400,000 shares had been validly tendered and not withdrawn, though shareholders can do so at any time before Jan. 21 at 5 p.m. ET, a deadline which can be extended. WBD has approximately 2.48 billion outstanding shares.
Netflix has also submitted a Hart-Scott-Rodino (HSR) filing and is engaging with regulators, including the U.S. Department of Justice and European Commission, on its $83 billion deal for Warner’s studio and streaming assets.
The streamer expects the deal to close in the next 12 to 18 months and WBD board chairman Samuel DiPiazza Jr. said that shareholders are expected to vote on the Netflix deal in late spring or early summer.
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