US Justice Department approves Paramount's takeover of Warner Bros. Discovery

The U.S. Department of Justice has greenlit the acquisition of Warner Bros. Discovery (WBD) by Paramount Skydance, concluding a months-long review without demanding any changes. The department's antitrust division determined that the merger, valued at nearly $111 billion, poses no threat to the streaming market, traditional television, or the film industry. Officials stated the combination is "not expected to result in a significant impairment of competition and American consumers."

However, the decision faces opposition from Hollywood professionals. Actors, writers, and directors had previously voiced concerns in an open letter, warning that the takeover could weaken competition, limit creative diversity, and worsen working conditions within the industry. Notable signatories included actors such as Ben Stiller, Sandra Hüller, and Joaquin Phoenix.

Paramount, owned by David Ellison and backed by his father Larry Ellison of Oracle, is acquiring the entire WBD group, which includes television channels like the news network CNN. Critics are particularly worried about CNN's editorial independence, given the close ties of Paramount's owners to former U.S. President Donald Trump. Ellison has already faced criticism for appointing controversial opinion journalist Bari Weiss as the head of CBS News, with accusations that Weiss has influenced editorial decisions to align with the Trump administration's agenda, particularly concerning the renowned news program "60 Minutes."

The deal, initially agreed upon in late February after Netflix withdrew from acquisition talks and approved by shareholders in late April, is still under scrutiny by ten U.S. states, led by California. These states reportedly plan to file a lawsuit this month, according to Bloomberg. Paramount's acquisition also includes the U.S. television network CBS, further consolidating Ellison's media holdings.

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The deal is not expected to result in a significant impairment of competition and American consumers.