Paramount Skydance Corp. is aiming to wrap up a Justice Department antitrust review of its tender offer for Warner Bros. Discovery Inc. shares within the coming weeks.
The company has been supplying the government with requested information, according to Bloomberg, citing sources familiar with the matter.
Once submitted, a 10-day waiting period will follow, during which the Justice Department will determine whether to challenge Paramount’s offer over competition concerns.
Obtaining early regulatory approval is a key part of Paramount’s strategy to block Netflix Inc.’s planned acquisition of Warner Bros.’ studios and streaming operations.
By showing it has cleared a major regulatory hurdle, Paramount aims to convince Warner Bros. shareholders to reject the Netflix deal.
In December, Warner Bros. agreed to sell its studios and streaming divisions to Netflix for $82.7 billion, choosing Netflix over a competing offer from Paramount. Warner Bros. plans to seek shareholder approval for the deal by April, while Paramount has been trying to circumvent the agreement by appealing directly to shareholders and lobbying regulators.
A potential lawsuit from the Justice Department to block the Netflix deal could boost Paramount’s chances of acquiring Warner Bros. without having to raise its $30-per-share all-cash offer.
A Netflix spokesperson said that the company expects Paramount will “self-declare” its compliance with federal regulators.
“We remain focused on the value Netflix and Warner Bros. can create together,” the spokesperson was quoted as saying.
