On March 18, Acting Assistant Attorney General Omeed Assefi announced that the Department of Justice would not grant a fast‑track review for Paramount Skydance Corporation’s proposed $110 billion acquisition of Warner Bros. Discovery. The announcement clarified that political factors would influence the pace of the review, but Assefi denied that enforcement had been politicized, stating that the decision was based on regulatory considerations rather than political pressure.
The acquisition, announced on February 27, 2026, values Warner Bros. Discovery at $110 billion in enterprise value and $81 billion in equity value, with Paramount offering $31 per share in cash. The transaction is expected to close in the third quarter of 2026, and a ticking fee of $0.25 per share per quarter will apply if the deal does not close by September 30, 2026. Paramount Skydance itself was formed in 2025 through an $8 billion merger of Skydance Media and Paramount Global.
The DOJ review falls under the Hart‑Scott‑Rodino Act, which requires a standard waiting period and allows for a “second request” that can extend the review by several months. By opting for the standard review path, the DOJ signals a more thorough examination, potentially delaying the transaction’s closing date beyond the original schedule.
Assefi’s comments highlighted a nuanced stance: while he dismissed claims that enforcement had been politicized, he acknowledged that political factors could affect the speed of the review. He emphasized that the decision to avoid a fast‑track was rooted in regulatory prudence rather than political influence.
The announcement was met with a muted market reaction, as investors expressed caution over the extended review timeline. The uncertainty surrounding the regulatory process has led to a cautious stance among market participants.
WBD CEO David Zaslav viewed the deal positively, emphasizing the potential to maximize value for investors, while Paramount CEO David Ellison framed the pursuit as a step toward building a next‑generation media company. These statements underscore the strategic intent behind the deal despite the regulatory delay.
Additional scrutiny comes from the California Attorney General’s investigation and concerns raised by the International Brotherhood of Teamsters about potential job losses. These developments add layers of regulatory and labor scrutiny that could further influence the review timeline.
The DOJ’s decision to forgo fast‑track approval signals a more comprehensive examination of the transaction, adding uncertainty to the deal’s timeline and shaping the competitive landscape of the media and entertainment sector.
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