Network 10 Owner’s $170B Warner Bros Deal Clears ACCC Review

Paramount Skydance’s proposed A$170 billion acquisition of Warner Bros Discovery has cleared Australia’s competition watchdog, with the ACCC finding the deal is unlikely to substantially lessen competition in the local media, streaming or advertising markets.

The clearance came days before the US Department of Justice also approved the landmark media deal without conditions.

The DOJ’s Antitrust Division closed its investigation into the transaction after concluding the merger was “not likely to result in harm to competition or American consumers.”

It did not require divestitures, behavioural undertakings or other concessions.

The deal, valued at about US$110 billion, or roughly A$170 billion, would combine Paramount’s film, television and streaming assets with Warner Bros Discovery’s portfolio, including HBO Max, CNN, Warner Bros Pictures, Discovery, TBS, TNT and Animal Planet.

The decision is significant for the local market because Paramount operates Network 10, 10 Play and Paramount+ in Australia.

A merged group would also control HBO Max and Warner Bros Discovery’s suite of pay-TV and factual entertainment channels.

The ACCC found that Australian consumers and content buyers would still have access to competing suppliers, including Disney, Universal, Sony, Netflix, Stan, Binge, NBCUniversal, Lionsgate and local producers.

However, the merger is not yet a done deal.

California Attorney General Rob Bonta has confirmed his office is still investigating the transaction, while reports suggest a group of US state attorneys general could mount a legal challenge.

The deal is also under review in Europe, with the European Commission expected to make an initial decision in July and the UK Competition and Markets Authority working towards an August deadline.

Hollywood unions and creative figures have also raised concerns that the merger could lead to fewer jobs, fewer production opportunities and reduced choice for audiences.

Paramount argues the tie-up will create a stronger competitor to Netflix, Disney, Amazon and Apple in streaming and entertainment, while delivering more than US$6 billion in expected merger savings.

The company says it remains focused on closing the transaction as soon as possible.