Bidding for Warner Bros. (WBD.US) enters a critical period, while Paramount Skydance (PSKY.US) speeds up the antitrust review process.

According to informed sources, Paramount Sky (PSKY.US) is pushing to complete the Justice Department's antitrust review of its acquisition of Warner Brothers Discovery (WBD.US) shares tender offer in the coming weeks. The sources stated that Paramount has been providing the government with the required information. Completing this task will trigger a 10-day waiting period, during which the Justice Department must decide whether to question Paramount's proposal on competition grounds. Obtaining early approval from regulators is a key strategic move for Paramount to defeat Netflix's acquisition of Warner Brothers Studios and streaming business plans. If Paramount can announce that major regulatory hurdles have been cleared, they will then try to convince Warner Brothers' shareholders to vote against the Netflix deal. In December, Warner Brothers agreed to sell its studio and streaming business to Netflix for $82.7 billion, rejecting Paramount's competitive bid. Warner Brothers plans to hold a shareholder vote on the proposal before April. Paramount has been trying to weaken Netflix's deal competitiveness by appealing directly to shareholders and lobbying regulatory authorities. The Justice Department may sue to block Netflix's acquisition, which would increase Paramount's chances of winning Warner Brothers without having to raise their all-cash bid of $30 per share. A Netflix spokesperson stated that the company believes Paramount will "self-declare" compliance with federal regulations. The spokesperson said, "We remain focused on creating value with Warner Brothers." The Justice Department is conducting a thorough review of Netflix and Paramount's bids. Sources familiar with the situation revealed that key Hollywood interest groups, including talent agencies, have received information requests from federal officials. Approval from the Justice Department does not mean Paramount is in the clear. If Paramount changes crucial terms like pricing or ultimately signs a merger agreement with Warner Brothers, their proposal may need to be resubmitted for Justice Department review. Warner Brothers shareholders are expecting Paramount to raise their bid. Paramount and Netflix also face reviews in progress in the EU and the UK, as well as investigations by state attorneys general in the US. So far, Paramount has refused to increase its $108 billion bid for all of Warner Brothers, insisting that their offer is superior to Netflix's and more likely to receive approval from regulatory authorities. Paramount CEO David Ellison argued that the combination of Netflix, HBO, and Warner Brothers would create the world's largest pay streaming company. Netflix's deal has faced criticism, including bipartisan attacks at a Senate hearing on February 3. Warner Brothers and Netflix expressed confidence in garnering regulatory support for their deal and believed Paramount's deal would be more detrimental to Hollywood. However, they acknowledged that the Justice Department's review may continue into later this year.