The Zhitong Finance App learned that J.P. Morgan CEO Jamie Dimon recently said that while the US Department of Justice has approved Paramount (PSKY.US) to buy Warner Bros. Discovery (WBD.US) for 110 billion US dollars, states are still trying to block this deal, and he has reservations about this.
In an interview on Wednesday, Dimon said, “The Department of Justice is a specialized agency in the field of antitrust, and of course the deal should be examined by it. But if every such deal has to be voted on by the states, then there is actually a risk that it may cause serious damage to our capital market and the entire dynamic system.”
Last month, California took the lead in filing a lawsuit with 11 other states to challenge this major media merger case. Paramount later announced that it would delay the acquisition of Warner Bros. until the fifth day after the court makes a final ruling on the merger case, or until June, whichever is earlier.
Damon also said he thinks the film and television industry is very competitive. In an interview, he stated, “The industry is very competitive. Some companies are struggling, while others are doing well, and there is a huge influx of capital from all sides, including multi-channel investments from large enterprises.”
Dimon added, “It's a highly competitive market. The deal has been approved by all the institutions that are really proficient in antitrust matters. Even if the deal lands, both David Ellison and other players in the industry will face a tough competitive landscape in the future.”
J.P. Morgan Chase is leading a $10 billion loan program to support the Warner Bros. acquisition deal and is also acting as an advisor on the acquisition.
AMC Cinemas (AMC.US) CEO Adam Aron said last week that he supports this major media merger.
In an article published on Wednesday, Alon wrote, “This deal is critical to the future of the industry and must be completed as soon as possible so that we can all use this momentum to grow — a momentum that the industry has only just built after six difficult years. But to do that, it is necessary to overcome legal challenges from a group of state attorneys general who may have good intentions but questionable practices.”