FCC Chairman Brendan Carr stated on Tuesday that Paramount's acquisition bid for Warner Bros. Discovery is a "good deal" and will receive approval "swiftly." Carr indicated that Netflix's previous bid would have "raised many competition concerns."

Paramount has stated it will pay a $7 billion breakup fee if the deal fails to gain regulatory approval.

FCC Chairman Brendan Carr told media that Paramount's bid for Warner Bros. Discovery is "cleaner" than Netflix's and added that he expects the transaction to be approved "fairly quickly."

Speaking on the sidelines of the Mobile World Congress in Barcelona on Tuesday, Carr said, "There were a lot of concerns when Netflix was the potential buyer. That particular combination raised a lot of competition concerns."

Paramount Skydance submitted a revised offer last week to acquire all shares of WBD for $31 per share, up from a previous offer of $30 per share. The WBD board views this as superior to Netflix's existing proposal.

Netflix had originally planned to acquire the media giant's studio and streaming businesses for $27.75 per share but stated that, given Paramount's offer, it was "no longer financially attractive."

The merger deal still requires regulatory approval.

Carr said gaining regulatory approval for Netflix would be "a very difficult path" and added that Paramount's deal is "much cleaner and doesn't raise the same types of concerns at all."

He further commented, "I think there can be some real consumer benefits that come out of this."

Both deals have raised antitrust issues surrounding the U.S. theatrical industry, sparking concerns about potential job losses in Hollywood or a reduction in the number of films produced. Netflix's proposed merger also raised questions about streaming dominance, as it would combine two of the most popular streaming services: Netflix and WBD's HBO Max.

On Monday, Paramount stated it plans to release at least 30 films per year, equating to 15 films per studio. Executives also said that upon completion of the deal, its streaming service Paramount+ would be merged with HBO Max into a single service.

It remains unclear what the regulatory process for Paramount and WBD will involve. The FCC typically reviews deals involving one of the national broadcast networks, including Paramount's CBS, and last year supported the merger between Paramount and Skydance.

Carr added, "Even if the FCC has any role, it's a fairly minor one. I think this is a good deal, and I think it should pass quickly."

Unlike the proposed deal with Netflix, Paramount's bid covers WBD's pay-TV networks such as CNN, TBS, and TNT.

Should the deal fail to gain regulatory approval, Paramount has proposed paying a $7 billion breakup fee. It has already paid the $2.8 billion breakup fee that WBD owed Netflix due to the cancellation of their transaction.

"Much Easier"

Some concerns surrounding the Netflix-WBD deal included potential consumer price increases and reduced competition.

In December, U.S. President Donald Trump stated that the potential deal "could be a problem" as it would increase Netflix's market share. A month later, he walked back those comments, stating the deal would be reviewed solely by the Department of Justice.

Democratic Senator Elizabeth Warren said in a statement that the merger between Paramount and WBD is "an antitrust disaster that threatens higher prices and fewer choices for American families."

Analysts from investment bank Raymond James said last week that the Paramount-WBD deal is "much easier" than the Netflix deal.

The analysts wrote, "This deal presents new challenges in news, cable networks, international linear networks, etc., but we still believe the WBD/PSKY deal is more acceptable overall. Moreover, especially following the reaction to the WBD/NFLX agreement, we believe PSKY has a much stronger political position with the current U.S. administration than Netflix."

However, Paron Knadjian, a partner at consulting firm EisnerAmper, stated last week that the Paramount-WBD deal is not a certainty and the path forward appears more nuanced.

He said the Netflix-WBD deal primarily focused on library content, but Paramount's deal represents a "horizontal integration" between cable, sports, streaming, and news.

Knadjian noted, "I think the biggest issue we'll be looking at is the concentration of intellectual property under one roof. What kind of power does this new entity have in terms of raising fees?"

Knadjian added, "Regulatory pressure, political pressure—these are factors that will certainly delay the deal and make it more complex. I believe significant concessions will be necessary for it to pass."

Another outstanding question is whether the Committee on Foreign Investment in the United States (CFIUS) will find issues with the deal's structure. Paramount's offer includes approximately $24 billion from sovereign wealth funds of Gulf nations.