Paramount defends $35 billion Warner takeover as California DOJ opens probe
Paramount Global defended its approximately $35 billion unsolicited takeover offer for Warner Bros Discovery while responding to a California Department of Justice antitrust investigation into film studio licensing practices. The company stated the probe will not alter its bid timeline or terms, remaining committed to closing the transaction by mid-2026.
1. California DOJ Antitrust Investigation
The California Department of Justice has launched an antitrust inquiry into major film studios’ licensing and digital rental fee practices, focusing on potential coordination in pricing windows for streaming and home entertainment. Investigators are examining whether the studios collectively imposed uniform premium pricing that could limit consumer choice and inflate costs.
2. Paramount’s Defense and Bid Details
Paramount Global issued a public statement asserting that the investigation does not involve its proposed Warner takeover and will not derail its unsolicited $35 billion offer. The company emphasized that its bid comprises a mix of cash and stock and remains fully financed and on schedule.
3. Deal Timeline and Market Implications
Paramount reiterated its goal of completing the Warner Bros Discovery acquisition by mid-2026, noting that regulatory reviews are progressing according to plan. Analysts say the DOJ probe could extend overall merger approvals, but Paramount’s confidence in its deal structure may help reassure investors and limit share volatility.