The FCC is expected to support Paramount's $110 billion Warner Bros. deal: FT

The chair of the Federal Communications Commission, Brendan Carr, has indicated that the regulator is unlikely to block Paramount Global’s proposed $110 billion acquisition of Warner Bros. Discovery, according to a report by the Financial Times.

Speaking at the Mobile World Congress in Barcelona on Monday, Carr said concerns in Washington had focused more on Warner Bros’ previously agreed deal with Netflix, particularly regarding market concentration. However, he described the potential market share implications of a Paramount-Warner combination as “drastically different.”

Paramount signed the $110 billion, or $31-per-share, agreement for Warner Bros last week after Netflix declined to raise its offer. The acquisition is set to be funded by $47 billion in equity from the Ellison family and RedBird Capital Partners, along with $54 billion in debt commitments from Bank of America, Citigroup and Apollo Global Management.

Carr told the Financial Times that the foreign debt involved would likely qualify as “bona fide debt” under FCC rules, meaning the review process would be “very quick” and largely procedural.

Despite the regulator’s apparent openness, lawmakers from both political parties have voiced concerns that the merger could reduce consumer choice and drive up prices. Cinema operators have also warned that combining two major Hollywood studios could result in job losses and fewer films being released in theatres.

Carr described competition in the media sector as “very robust” and said the FCC is considering regulatory changes aimed at encouraging greater investment and scale in broadcast. The FCC, Paramount and Warner Bros. Discovery did not immediately respond to requests for comment.