DOJ Issues Subpoenas in Paramount–Warner Bros. Discovery Merger Probe

The deal, which would unite two of Hollywood’s most prominent studios along with their streaming platforms and news divisions, has drawn significant attention across both the entertainment industry and financial markets. According to CNBC, regulators are now focusing on how the merger could reshape competition, content distribution, and the broader media landscape.

Sources familiar with the matter indicated that the DOJ is seeking detailed information on how the combined company would influence studio output, ownership of content rights, and competition among streaming services. Per the CNBC, investigators are also examining potential downstream effects on movie theaters, a sector already under pressure from shifting viewing habits and consolidation within the industry.

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Acting Assistant Attorney General Omeed Assefi recently emphasized that the deal would not receive expedited treatment, stating that Paramount will “absolutely not” be fast-tracked for approval due to political considerations. Meanwhile, Paramount’s Chief Legal Officer Makan Delrahim acknowledged that the company anticipated regulatory reviews across multiple jurisdictions, according to CNBC.

International regulators are also taking an active role. The European Commission has reportedly begun engaging with third parties, while Canadian authorities have reached out to at least one company for input. In the United States, the California Attorney General’s office is similarly consulting industry participants, per the CNBC.

Related: DOJ Antitrust Chief Says Paramount-WBD Deal Won’t Get Special Treatment

Paramount has aggressively pursued the deal, outmaneuvering competitors such as Netflix, and has signaled confidence in closing the transaction. According to CNBC, the company has committed to paying Warner Bros. shareholders a quarterly “ticking fee” of 25 cents per share starting in October if the deal remains incomplete.

However, the proposed merger has raised concerns among labor groups and industry stakeholders. One major issue is whether consolidation would reduce the number of buyers for films and television projects, potentially limiting opportunities for independent creators. The DOJ has reportedly contacted independent production companies to assess how the deal could impact competition, according to CNBC.

Paramount has projected approximately $6 billion in cost synergies from the merger, which often implies significant operational cuts. Per the CNBC, the company expects most of these savings to come from streamlining technology infrastructure, real estate, and other corporate functions.

Labor unions have voiced strong opposition. The Teamsters union warned that the merger “poses a direct threat” to employment and urged regulators to block the deal unless protections for jobs and production output are enforced. Similar concerns have been echoed by theater owners, who argue that past studio consolidations have led to fewer films being produced.