Paramount has a problem. They want to block the takeover of Warner Bros.

Netflix has withdrawn from its acquisition of Warner Bros. The streaming service’s offer was outbid by Paramount Skydance. Thus, the owners of, among others, CBS stations will become owners of brands such as Harry Potter, DC and The Lord of the Rings. However, there are already voices calling for the transaction to be blocked.

The transaction is worth a total of USD 110 billion. Paramount agreed to pay $31 per share plus a possible 25 cents for each quarter of the deal’s delay. The company also agreed to pay compensation to Netflix in the amount of $2.8 billion, as well as to pay Warner Bros. Discovery compensation in the amount of USD 7 billion if the merger does not ultimately take place.

It seems that the path is open for companies. The transaction is supported by the Donald Trump administration. The first voices also indicate probable consent from the European Unionbecause on our market the total share of the new consortium would be less than 20%. In such a case, it is difficult to talk about a monopolist.

This does not mean that the entire process will be quick and easy. The WGA (Writers Guild of America) is already calling for the transaction to be blocked. The writers’ union says this will be a disaster for the entertainment industry because it will reduce competition and hurt both viewers and creators.

California authorities may also be a problem. Rob Bonta, attorney general from this state, announced that the California Department of Justice is already investigating this matter and intends to conduct it with full rigor. The main concerns are mass layoffs, reducing the number of suppliers, and possible pressure on contractors

California may be the biggest obstacle to finalizing the merger of Paramount Skydance and Warner Bros. Discovery.