U.S. antitrust authorities appear close to approving Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery (NASDAQ:WBD), according to a report published Tuesday by Semafor citing sources familiar with the discussions.
The report said senior executives from Paramount met with officials at the U.S. Department of Justice for roughly two hours, during which Paramount chief executive David Ellison reportedly reaffirmed the company’s commitment to maintaining theatrical film releases.
According to Semafor, Justice Department attorneys appeared receptive to arguments from Paramount management that the transaction would not damage competition within the entertainment industry or negatively affect rival studios and creative professionals.
Reuters said it was unable to independently verify the report. Neither the Department of Justice, Paramount nor Warner Bros. Discovery immediately responded to requests for comment outside normal business hours.
The proposed merger has attracted intense scrutiny across both Hollywood and Wall Street because of its potential to combine some of the entertainment industry’s most valuable franchises under one company. At the same time, critics argue the deal could result in job losses across the film and television sectors.
In March, the Department of Justice issued subpoenas as part of its review of the transaction, requesting information related to how the merger could affect movie production levels, content licensing rights, competition among streaming platforms and the broader cinema industry.
The deal has also faced opposition from prominent figures within the entertainment industry. Jane Fonda, J.J. Abrams and Mark Ruffalo were among nearly 3,500 signatories to an open letter warning that the merger could reduce opportunities for creators, lead to employment cuts and increase costs for consumers.
Paramount has reportedly moved aggressively to secure the transaction ahead of rival interest from Netflix and has prioritised a rapid completion timeline. As part of those efforts, the company agreed to pay Warner Bros. Discovery shareholders a quarterly “ticking fee” of 25 cents per share beginning in October if the acquisition has not closed by that point.