U.S. DOJ clears Paramount Skydance’s planned acquisition of Warner Bros.

The U.S. Justice Department's Antitrust Division has given the green light to Paramount Skydance Corp's proposed $110 billion acquisition of Warner Bros. Discovery, determining the deal does not threaten competition.

In a statement released Friday, Justice Department officials confirmed their review found no competitive risks in streaming, traditional television, or film. This decision offers Paramount a crucial regulatory approval as it navigates potential opposition from U.S. states aiming to block the merger.

While the Justice Department has cleared the acquisition, other regulatory bodies are still reviewing aspects of the deal. The Federal Communications Commission (FCC) has yet to rule on Paramount's request for approval of foreign investments backing the acquisition. Concerns have been voiced by U.S. senators regarding the involvement of Middle Eastern sovereign wealth funds and Chinese companies.

The acquisition has also drawn criticism from within Hollywood. Actors, directors, writers, and producers have expressed apprehension that the merger could lead to fewer job opportunities and a reduction in storytelling diversity. Meanwhile, states like California and New York are reportedly preparing legal challenges to halt the deal, according to sources.