Trump FCC chair: Paramount/Warner Bros. merger likely to get quick approval

The proposed acquisition of Warner Bros. Discovery (WBD) by Paramount Skydance, valued at $111 billion, has garnered favorable commentary from Federal Communications Commission (FCC) Chairman Brendan Carr. Speaking to CNBC, Carr noted that the Paramount-WBD merger appears to be less complex compared to the now-defunct Netflix deal that aimed to acquire WBD. Carr expressed that the potential combination with Netflix would have faced significant regulatory hurdles due to the extensive reach and influence it would have created in the streaming landscape, particularly with HBO Max. He highlighted the considerable concerns raised in Washington regarding Netflix's ambitions, which ultimately led the streaming giant to withdraw its offer in favor of Paramount's proposal. In contrast, Carr believes that the merger between Paramount and WBD poses fewer regulatory issues and could yield genuine benefits for consumers. Paramount plans to integrate its Paramount+ service with HBO Max, which Carr suggests does not invoke the same level of apprehension as the Netflix scenario. The deal is spearheaded by CEO David Ellison of Paramount Skydance, who has financial backing from his father, Larry Ellison, who has committed $40 billion toward the acquisition. This merger appears to have gained support from influential figures, including former President Trump. While the FCC is responsible for reviewing mergers when broadcast licenses are involved, in this case, there are no such licenses to transfer since WBD does not own any television broadcast licenses. However, Paramount Skydance must navigate FCC regulations regarding foreign ownership, as it is an existing licensee with 28 local CBS stations. The involvement of foreign investors in financing the acquisition may prompt an FCC examination to ensure compliance with ownership regulations.