As Predicted: Paramount Will Acquire Warner Bros.

 

I posted earlier this year that Paramount would acquire Warner Bros. See 'Paramount Takes Warner Bros. Good/Bad for the Cinema.' This was not a great prognostication on my part, as all indications pointed to the takeover occurring. Certainly, Warner's management and shareholders favored it, with an all-cash deal of $111 billion or $31 per Warner share, which bested Netflix, the other bidder.

There was plenty of negative posturing on the part of Hollywood, opposing the merger based solely on self-interest, which was bolstered by Democratic members of the U.S. Congress, but attempts to scuttle the takeover failed. 

Essentially, the reason for approving the purchase was the fact that there were no antitrust issues associated with it. There is plenty of competition in the entertainment industry, from the major studios down to the individuals podcasting on YouTube channels. Therefore, there was no reason for the Securities and Exchange Commission to oppose the purchase.

Good luck to the Ellisons