Highlights
- FCC Chair Brendan Carr has signalled the watchdog will not seek to block Paramount's $110 bn deal
- The $31-per-share deal will be funded by $47 bn in equity from the Ellison family and RedBird Capital Partners plus $54 bn in debt.
- Carr described competition concerns over the Paramount deal as "drastically different".
Paramount agreed the $110 bn, or $31-per-share, deal for Warner Bros last week after Netflix declined to raise its offer.
The acquisition will be funded by $47 bn in equity from the Ellison family and RedBird Capital Partners, with additional debt commitments of $54 bn from Bank of America, Citigroup and Apollo.
Regulatory outlook
Carr told the FT that foreign debt involved in the deal would qualify under FCC rules as "bona fide debt," adding it would require "a very quick, almost pro forma review."
He described competition in the media sector as generally "very robust" and said regulators were looking at changes "to try to encourage more investment and more scale in broadcast."
Lawmakers on both sides of the political aisle have raised concerns that any Warner Bros acquisition could result in fewer choices and higher prices for consumers, while cinema operators have warned that combining large Hollywood studios could reduce jobs and the number of films released in theatres.
The FCC, Paramount and Warner Bros did not immediately respond to requests for comment.
