Paramount Secures Mexican Antitrust Approval for Warner Bros. Merger
Paramount received clearance from Mexico's competition regulator for its planned merger with Warner Bros., leaving only a dozen U.S. state attorneys general as remaining obstacles.
Paramount announced Friday that Mexico’s competition authority has approved its merger with Warner Bros., joining approvals from regulators in 68 countries, including the European Union, China, Canada, Brazil and the United Kingdom. The company said the remaining hurdle is the lawsuit filed by 12 state attorneys general, which it hopes to resolve through a settlement rather than a federal trial scheduled for March.
"While we remain confident that the law and the facts are on our side, we have offered commitments and concessions and remain open to working constructively with the State AGs to find a path forward in the interest of our employees and the creative community," CEO David Ellison said.
The states, led by California, sued in federal court in July, alleging the merger would reduce competition in cable, theatrical and blockbuster film markets and limit buyers for writers. A temporary restraining order paused the deal for 28 days, and the trial has been set for March 2 after the states requested more time for evidence gathering.
Paramount indicated it would incur a $7 million-a-day penalty fee to Warner Bros. investors starting September 30 if the merger remains delayed, and it has warned it may consider relocating out of California if a resolution is not reached by October 1. California Attorney General Rob Bonta said the states intend to pursue the case at trial and that the company’s proposed remedies do not adequately address competition concerns.