FCC Chairman Brendan Carr stated that Paramount's proposed acquisition of Warner Bros. Discovery is "cleaner" from a regulatory perspective compared to Netflix's earlier bid and is expected to be approved swiftly.
Background on the Merger
- Paramount Skydance submitted a revised offer to acquire all of WBD at $31 per share, increased from $30 per share.
- The WBD board evaluated this offer as superior to the existing Netflix proposal.
Carr's Assessment at Mobile World Congress
- Speaking to CNBC's Arjun Kharpal in Barcelona, Spain, Carr emphasized that Netflix's potential purchase raised significant competition concerns.
- He contrasted this with Paramount's deal, describing it as "a lot cleaner" and not raising the same types of issues.
Comparison with Netflix's Withdrawn Bid
- Netflix had proposed to buy WBD's studio and streaming businesses for $27.75 per share.
- However, Netflix withdrew its offer, stating it was "no longer financially attractive" following Paramount's higher bid.
Regulatory Outlook and Consumer Benefits
- The merger requires approval from regulators, including the FCC.
- Carr predicted a quick approval process for the Paramount-WBD transaction.
- He also highlighted potential real consumer benefits that could emerge from the merger.