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US Watchdogs OKs Discovery-WarnerMedia Mega Deal

 |  February 9, 2022

Media company Discovery’s plan to acquire venerable film and TV studio WarnerMedia has passed the US Department of Justice’s antitrust review, clearing another hurdle toward closing, according to a regulatory filing on Wednesday.

The $43 million deal, which was announced last May, received unconditional antitrust clearance from the European Commission in December. WarnerMedia parent AT&T has also received a letter from the Internal Revenue Service approving the merger’s tax-free status, another key requirement for the closing.

Related: AT&T Will Spin Off WarnerMedia In $43B Discovery Merger

The deal now awaits approval by Discovery’s shareholders. It already has the support of investors John Malone and the Newhouse family.

The European Commission, the executive body of the European Union, approved the deal in December.

Having avoided any formal antitrust challenge, the Discovery and WarnerMedia teams can now begin to prepare for the combination. Among key decisions Hollywood and Wall Street will focus on are executive appointments, potential cost-cutting moves and the unveiling of Warner Bros. Discovery’s streaming strategy.

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