Antitrust Chief Signals No Fast Track for Paramount-Skydance Deal Amidst Political Scrutiny
Washington D.C. – The proposed acquisition of Warner Bros. Discovery by Paramount and its partner Skydance Media will face a rigorous and deliberate review process, with no shortcuts expected due to political considerations, according to Omeed Assefi, the acting head of the U.S. Department of Justice's antitrust division. Assefi, who resumed his leadership role following the departure of Gail Slater, emphasized that antitrust enforcement is not swayed by political influence.
"The idea that somehow enforcement has been politicized is ludicrous," Assefi stated in a recent interview, declining to comment on specific ongoing investigations. He projected an aggressive stance from the division, indicating that both merger reviews and investigations into anticompetitive conduct will see increased activity.
This assertive approach is underscored by recent enforcement trends. Assefi highlighted that during his previous leadership of the antitrust division's criminal program in 2025, the amount of prison time imposed for antitrust crimes saw a dramatic increase of 1,200% year-over-year. DOJ enforcement data corroborates this, showing an approximate fivefold jump in average prison sentences for such offenses in 2025 compared to the preceding year.
Paramount Merger Faces Scrutiny, Not Favored Treatment
Analysts had previously speculated that Paramount might experience a smoother regulatory path in the U.S. for its acquisition deal, partly due to perceived political connections. The father of Paramount CEO David Ellison, billionaire Oracle co-founder Larry Ellison, has been known to have cultivated relationships with former President Donald Trump. However, Assefi directly refuted any notion of preferential treatment.
"Absolutely not," Assefi declared when questioned about whether Paramount's deal would receive expedited or easier review due to political factors. He drew a parallel to the experience of Netflix's CEO, Ted Sarandos, stating, "I think even Ted Sarandos has been very vocal about the fact that he had a very open and fair and thorough review under us." Netflix had previously submitted a competing bid for Warner Bros.' studio and streaming assets, which was under DOJ review until the company withdrew its offer rather than matching Paramount's proposal.
Paramount has argued that its proposed acquisition presents fewer competitive concerns than Netflix's bid. The state of California is also reportedly investigating the transaction, with Attorney General Rob Bonta having indicated the state's probe.
"Kitchen Table Issues" Drive Antitrust Agenda
Echoing the priorities of his predecessor, Gail Slater, Assefi confirmed that the antitrust division's agenda is firmly focused on "kitchen table issues" such as affordability. The overarching goal, he explained, is to "improve the lives of people as fast as possible" by targeting anticompetitive practices that contribute to increased costs for essential goods and services like food, healthcare, and housing.
Assefi's background as a criminal prosecutor has shaped his approach to civil enforcement. "I want to focus on the conduct that we have the most problem with, ameliorate that, and then move on to the next matter," he stated, emphasizing a targeted and impactful strategy.
He pointed to the DOJ's recent settlement with Live Nation as a prime example of a "historic outcome" that has demonstrably restored competition, surpassing the effectiveness of previous administrations or private legal actions.
Big Tech "Acquihires" Raise Red Flags for Regulators
In addition to scrutinizing traditional mergers, Assefi urged companies to engage transparently with the merger review process and avoid evasive tactics. He specifically called out "acquihires"—a practice where large technology firms offer substantial payments to promising startups not to formally acquire them, but to secure their technology and talent—as increasingly being viewed by antitrust regulators as a means to circumvent merger rules.
A recent instance involved Nvidia agreeing in December to license chip technology from the startup Groq and hire its CEO, without purchasing the company outright. Unlike formal acquisitions, which require companies to submit transaction details to federal antitrust enforcers, acquihires allow for the absorption of firms without undergoing the standard merger review.
"When I see conduct that appears aimed to circumvent that process, as a litigator, as an enforcer, that's more of a red flag to me than if you had just participated and complied" with the established review protocols, Assefi warned. He stressed the importance of companies being willing to engage in the merger review process, which allows the DOJ to efficiently address concerns or, conversely, to expedite reviews for deals that pose no competitive risks.
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