U.S. antitrust regulators appeared ready to approve Paramount Pictures' $110 billion acquisition of Warner Bros. Discovery after a two-hour meeting with the U.S. Department of Justice, media reported on Tuesday, citing people familiar with the matter.
According to reports, at the meeting, Paramount CEO David Ellison reiterated his commitment to insisting on releasing movies in theaters.
In-house Justice Department lawyers reportedly appeared to be convinced by Paramount executives' arguments that the deal would not harm the interests of other studios and creative talent.
Hollywood and Wall Street are extremely concerned about the high-risk deal, which will consolidate some of the entertainment industry's most vital IP series, but may also lead to the loss of jobs in the film and television industry.
In March, the U.S. Department of Justice issued a subpoena as it investigated Paramount's acquisition of Warner Bros., requesting information on how the deal would affect studio output, content rights, competition among streaming services, and how the acquisition might affect movie theaters.
Top Hollywood stars also opposed the merger. Nearly 3,500 signatories, including Jane Fonda, J.J. Abrams and Mark Ruffalo, signed a letter arguing that the merger will lead to reduced opportunities for creators, loss of jobs and higher costs for consumers.
Paramount fought to wrest the deal from Netflix and is betting on a quick completion, promising to pay Warner Bros. shareholders a quarterly "delay fee" of 25 cents per share starting in October if the deal doesn't close by October.