Illustration shows Paramount and Warner Bros logos
Washingotn: Paramount Skydance's proposed acquisition of Warner Bros Discovery will "absolutely not" have a fast track to approval because of political factors, the head of the U.S. Department of Justice's antitrust division told Reuters in an interview on Wednesday.
"The idea that somehow enforcement has been politicized is ludicrous," said Acting Assistant Attorney General Omeed Assefi, who declined to comment on ongoing probes.
Also Read: Paramount's $110 billion Warner Bros deal poised to win FCC backing: FT
Warner Bros shares briefly extended losses on the news and were trading down 0.7% on Wednesday afternoon. Paramount trimmed losses to trade down 1.7%.
Analysts have viewed Paramount as facing an easier road to regulatory clearance in the U.S. in part because of its political connections. Paramount CEO David Ellison's father, billionaire Oracle co-founder Larry Ellison, has cultivated ties with President Donald Trump.
"Absolutely not," Assefi said in response to a question about whether Paramount would receive an easier way through deal review because of political factors.
"I think even Ted Sarandos has been very vocal about the fact that he had a very open and fair and thorough review under us," Assefi said, referring to the CEO of Netflix.
Also Read: Tencent is said to be back on Paramount-Warner Bros deal with fresh funding
Netflix's competing bid for Warner Bros' studio and streaming assets was under review by the DOJ until it walked away from the deal rather than match Paramount's offer. Paramount maintains that its deal poses fewer problems for competition than Netflix's bid. California Attorney General Rob Bonta has said the state is probing the transaction.
"The idea that somehow enforcement has been politicized is ludicrous," said Acting Assistant Attorney General Omeed Assefi, who declined to comment on ongoing probes.
Also Read: Paramount's $110 billion Warner Bros deal poised to win FCC backing: FT
Warner Bros shares briefly extended losses on the news and were trading down 0.7% on Wednesday afternoon. Paramount trimmed losses to trade down 1.7%.
Analysts have viewed Paramount as facing an easier road to regulatory clearance in the U.S. in part because of its political connections. Paramount CEO David Ellison's father, billionaire Oracle co-founder Larry Ellison, has cultivated ties with President Donald Trump.
"Absolutely not," Assefi said in response to a question about whether Paramount would receive an easier way through deal review because of political factors.
"I think even Ted Sarandos has been very vocal about the fact that he had a very open and fair and thorough review under us," Assefi said, referring to the CEO of Netflix.
Also Read: Tencent is said to be back on Paramount-Warner Bros deal with fresh funding
Netflix's competing bid for Warner Bros' studio and streaming assets was under review by the DOJ until it walked away from the deal rather than match Paramount's offer. Paramount maintains that its deal poses fewer problems for competition than Netflix's bid. California Attorney General Rob Bonta has said the state is probing the transaction.
