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DOJ subpoenas ramp up scrutiny of Paramount–Warner Bros. mega‑merger

U.S. antitrust regulators have escalated their investigation into Paramount Skydance’s proposed takeover of Warner Bros Discovery, issuing subpoenas and broadening their inquiry as the $110 billion media mega‑merger heads toward a crucial shareholder vote. The probe, now drawing in regulators from Europe and Canada alongside U.S. states, comes amid mounting concerns about content consolidation, streaming competition and the fate of tens of thousands of entertainment jobs.

By Jane Thompson, Senior Business Correspondent | Published March 27, 2026 14:00 UTC | 9 min read

Image brief: A photograph of the U.S. Department of Justice building in Washington, D.C., taken in March 2026. The neoclassical facade should be visible along with American flags fluttering outside. The caption should note that the DOJ is investigating the Paramount–Warner Bros. merger. Alt text: “The U.S. Department of Justice building under a clear sky in March 2026; the DOJ is reviewing Paramount Skydance’s proposed acquisition of Warner Bros Discovery.”

The Justice Department has sent subpoenas to parties involved in Paramount Skydance’s proposed $110 billion acquisition of Warner Bros Discovery, three sources told Reuters. The subpoenas seek detailed information about how the deal might affect studio output, content rights, streaming competition and movie theaters. Inquiries have also gone out to independent production companies and theaters, underscoring regulators’ concern that consolidation could reduce the number of buyers for films and television shows.

Multiple jurisdictions are probing the deal. The European Commission and Canada have contacted industry participants about the transaction, and California’s attorney general is also eager to speak with third parties. Acting Assistant Attorney General Omeed Assefi, who heads the DOJ’s antitrust division, said last week that the deal will “absolutely not” receive a fast track because of political considerations. The widened scrutiny makes it clear that the merger, which would combine two of Hollywood’s remaining major studios and their streaming services, faces a long regulatory road.

Escalating inquiry at Justice Department

The subpoenas mark a new phase in the DOJ’s probe. Investigators are requesting documents and interviews covering four key areas: how the merger would affect the quantity and diversity of film and television output, who will control content licensing rights, how the combined streaming platforms might influence subscription prices and advertising markets, and whether fewer studios could limit the number of movies shown in cinemas. Subpoenas are a formal investigative tool that can be followed by lawsuits or negotiated settlements if enforcers conclude the transaction is anticompetitive.

Paramount Skydance and Warner Bros Discovery have yet to file their definitive merger agreement with regulators. Paramount has said it is complying with the DOJ’s second request for information; in a February news release the company noted it had responded to the agency’s December information demand and secured clearance from Germany’s foreign investment authority. Paramount’s latest offer sweetened its bid with a $0.25 per share quarterly “ticking fee” for Warner shareholders if the deal takes longer than expected to close, underscoring management’s confidence that regulators will eventually sign off.

For now, regulators remain skeptical. Beyond potential consumer price effects, the DOJ is examining whether combined ownership of Paramount’s CBS network and Warner’s CNN, TBS and HBO could give a single company outsized influence over news and entertainment. Officials are also studying how consolidation could affect smaller theater owners and independent producers. If investigators find significant competition problems, the DOJ could sue to block the deal or negotiate remedies such as divestitures, content licensing conditions or guarantees for independent filmmakers.

Inside the $110 billion media mega‑merger

Paramount Skydance’s bid for Warner Bros Discovery, valued at about $110 billion including debt, would create a media powerhouse spanning broadcast networks, film studios, streaming platforms and cable channels. If completed, the combined company would control Paramount Pictures, Paramount+, CBS, Nickelodeon, BET, Warner’s iconic movie and TV studios, DC Comics, Turner Classic Movies, CNN, HBO and HBO Max. Paramount Skydance claims its all‑cash tender offer offers greater certainty than rival Netflix’s abandoned stock‑and‑cash proposal and has pledged to fund a $2.8 billion termination fee owed to Netflix if the existing agreement is terminated.

The merger would be one of the largest entertainment deals since Disney acquired 21st Century Fox in 2019. Warner Bros Discovery told investors this week that its shareholders will vote on the Paramount Skydance offer on April 23 at a special meeting scheduled for 10 a.m. Eastern. Variety reported that Paramount Skydance will be “one step closer to swallowing up Warner Bros. Discovery” if shareholders approve the $111 billion deal at that meeting. Paramount has offered to pay a 25‑cent per share quarterly fee to compensate Warner shareholders if regulatory delays push closing beyond 2026.

Warner Bros Discovery has maintained that the merger offers scale needed to compete with global streaming giants. The company emphasises that consolidation would expand its content library and global distribution, enabling a combined entity to invest more in programming and compete for sports rights. However, some investors remain wary; analysts note that Paramount’s bid must clear numerous regulatory hurdles and deliver promised synergies before shareholders see benefits.

Global regulatory gauntlet

The Justice Department is not the only body scrutinising the deal. The European Commission has begun contacting third parties to gauge how the transaction could affect competition in the European Union. Canadian regulators are pursuing a similar inquiry, while state authorities in California are seeking input from independent production companies. Under U.S. law, large mergers require reviews by both federal antitrust agencies and, in some circumstances, state attorneys general.

Acting Assistant Attorney General Omeed Assefi told Reuters that Paramount Skydance will “absolutely not” receive preferential treatment and that political ties will not influence the review. In a separate interview, Assefi signalled a more aggressive approach to merger enforcement and said the antitrust division is focused on “kitchen‑table issues” such as affordability and competition in daily goods and services. The comments indicate regulators will not hesitate to challenge deals that could raise prices or reduce quality, even in industries facing rapid technological change.

Outside the United States, competition officials are likely to examine how a combined Paramount–Warner entity would leverage its library across Europe, Asia and Latin America. Many countries impose local content quotas on streaming services; regulators may demand commitments to produce regional programming or limit exclusive licensing. The companies will also need clearance from foreign investment committees because of national security concerns around media ownership.

Labor unions and local governments sound the alarm

Beyond competition issues, the proposed merger has triggered alarms about its impact on employment and local economies. The International Brotherhood of Teamsters, representing 1.3 million members, told the DOJ that the deal “poses a direct threat to film and television workers nationwide,” including nearly 15,000 rank‑and‑file motion‑picture Teamsters. The union submitted a report outlining concerns and urged the DOJ to block the deal unless enforceable safeguards are enacted to increase domestic production and protect jobs. Teamsters General President Sean M. O’Brien said the merger “threatens the livelihoods of the very workers who built these studios” and that without enforceable protections “this merger can’t be allowed to move forward.”

Local officials share those fears. On March 24, the Los Angeles County Board of Supervisors approved a motion by Supervisor Lindsey P. Horvath to study the economic impact of the Paramount Skydance-Warner Bros deal and explore legal options to protect jobs. The motion cited an analysis by county economic staff, who warned that “more than 312,000 jobs” in L.A.’s entertainment industry could be at risk if production shifts out of the state or if consolidation reduces the demand for independent contractors. Supervisors vowed to petition state and federal regulators to impose conditions ensuring continued local production and workforce protections.

L.A. County’s involvement underscores broader concerns that the merger could accelerate a trend of layoffs and shuttered production facilities. After the pandemic, the entertainment industry only recently began to recover, and many workers are still grappling with the aftermath of extended strikes and streaming disruptions. With the merger poised to consolidate control of major studios under one corporate umbrella, union leaders and public officials warn that thousands of jobs could be outsourced or eliminated.

📊 NowCastDaily Analysis

The Justice Department’s subpoenas mark the most significant escalation yet in regulatory scrutiny of the Paramount Skydance–Warner Bros merger. The broad scope of inquiries into content output, streaming markets and theater access suggests regulators are preparing to challenge the deal if it threatens competition, consumer choice or employment. Multiple jurisdictions’ involvement complicates the companies’ path to approval and increases the risk of divergent remedies. Labor opposition and local economic worries amplify the political stakes and could sway regulators to demand enforceable guarantees on job retention and domestic production. With shareholders voting in April, the coming weeks will determine whether the deal’s supporters can convince regulators that scale will benefit consumers and workers or whether the merger will face a protracted legal battle and potential restructuring.

📌 Key Facts

• Subpoenas issued: The DOJ sent subpoenas seeking detailed information about the merger’s effects on film output, content licensing, streaming competition and theater impacts.
• Valued at roughly $110 billion: Paramount Skydance’s all‑cash offer for Warner Bros Discovery would create one of the largest entertainment companies since Disney’s Fox acquisition.
• Shareholder vote set: Warner Bros Discovery scheduled a special meeting for April 23 2026 at 10 a.m. Eastern to let shareholders decide whether to accept Paramount’s offer.
• Regulatory hurdles multiply: The European Commission, Canada and California are investigating the merger alongside the U.S. DOJ, signalling global antitrust scrutiny.
• Union opposition: The Teamsters union told the DOJ the merger threatens film and television workers and urged regulators to block the deal unless enforceable job protections are included.
• Local impact study: Los Angeles County Supervisors voted to analyze the merger’s economic impact and protect 312,000 local entertainment jobs, citing existing production slowdowns and industry consolidation.
• Paramount ticks up offer: To entice shareholders, Paramount added a $0.25 per share quarterly “ticking fee” if the deal isn’t completed by the end of 2026.
• Antitrust chief: no fast track: Acting Assistant Attorney General Omeed Assefi said the deal will not receive preferential treatment and that political factors will not influence the review.

❓ FAQ

What is the proposed value of the Paramount–Warner Bros merger?

Paramount Skydance’s offer for Warner Bros Discovery values the transaction at roughly $110 billion, including debt. The offer is an all‑cash tender that would pay Warner shareholders $30 per share and includes a $0.25 per share quarterly fee if the deal extends beyond December 31, 2026.

Why did the Justice Department issue subpoenas?

The DOJ issued subpoenas to gather detailed evidence on how the merger might affect competition. Investigators are looking at whether the combined company would reduce the number and diversity of films and shows produced, control content licensing in ways that harm rivals, dominate streaming markets or limit the number of movies shown in theaters. Subpoenas allow regulators to compel documents and testimony as they consider potential legal action or negotiated remedies.

When will shareholders vote on the merger?

Warner Bros Discovery scheduled a special shareholder meeting for April 23 2026 at 10 a.m. Eastern. At that meeting, investors will vote on whether to approve Paramount Skydance’s offer. The vote is a critical step but does not guarantee completion; regulatory approvals from U.S. and global authorities are still required.

⚡ NowCastDaily Bottom Line: The Justice Department’s decision to issue subpoenas underscores the high stakes in the Paramount Skydance–Warner Bros Discovery merger. By demanding detailed information on content, streaming and theater impacts, regulators signalled a willingness to challenge the deal if it threatens competition or jobs. With global regulators, labor unions and local governments adding pressure, the $110 billion mega‑merger faces a prolonged and uncertain road to approval.

Sources

1. Reuters – “Exclusive: US sends subpoenas in Warner-Paramount antitrust review as probe picks up steam” (March 27 2026)
2. Reuters – “Warner Bros shareholders to vote on $110 billion Paramount merger on April 23” (March 26 2026)
3. Variety – “Warner Bros. Discovery Sets Date for Shareholder Vote on Paramount Skydance Merger” (March 26 2026)
4. Los Angeles County Supervisor Lindsey Horvath – “Board Approves Sup. Horvath’s Motion to Evaluate Economic Impact of Warner Bros. Acquisition and Protect L.A. Entertainment Jobs” (March 24 2026)
5. Teamsters Union – Press Release: “Without Worker Protections, DOJ Must Block Paramount-Warner Merger” (March 2026)
6. Paramount – Press Release: “Paramount Enhances Its $30 per Share All-Cash Offer for Warner Bros. Discovery and Provides Update on Regulatory Progress” (Feb. 10 2026)
7. Reuters – “DOJ antitrust head says Paramount–Warner Bros deal review is not political” (March 18 2026)