US government clears Paramount's takeover of Warner

The U.S. government has greenlit Paramount's acquisition of Hollywood veteran Warner Bros. Discovery, clearing the deal without imposing any conditions. The Justice Department concluded that the merger would not negatively impact competition or consumers across television, streaming, and film production.

Despite the federal approval, antitrust reviews are continuing in multiple U.S. states and internationally, including in Europe. Paramount is backed by the family of software billionaire Larry Ellison, known for his support of former President Donald Trump. Initially, Netflix had reached an agreement to purchase Warner's streaming and studio operations last year.

However, Paramount persisted with a higher bid for the entire Warner Bros. Discovery conglomerate, which includes television channels like CNN. The deal is valued at approximately $111 billion. Critics of Trump in the U.S. express concern that CNN might lose its editorial independence under Paramount's ownership, a scenario they argue has occurred previously when media outlets were acquired by billionaires loyal to the president.

Trump himself had previously stated his strong desire for the news channel, which frequently reports critically on him, to change ownership during any Warner deal. Following the Ellison family's acquisition of Paramount's news network CBS, its reporting on the Trump administration became notably more favorable. Some correspondents at the popular program "60 Minutes" were reportedly dismissed, with some citing politically motivated pressure.

Paramount, led by film producer David Ellison, son of Larry Ellison, aims to significantly increase its influence in Hollywood through this acquisition. Paramount is considered a smaller player in the industry. Warner's assets include the DC superhero universe featuring Superman and Batman, film franchises like "Harry Potter," and a robust streaming service powered by HBO.