US Justice Department approves Paramount Skydance's $110 billion Warner Bros Discovery acquisition

The U.S. Justice Department has given the green light to Paramount Skydance Corporation's proposed acquisition of Warner Bros Discovery, removing a significant regulatory obstacle for a deal that could reshape the American entertainment landscape. The approval follows an eight-month investigation, during which the DOJ examined millions of documents and testimonies.

The department's anti-trust division concluded that the roughly $110 billion merger is unlikely to harm competition or American consumers. In a statement, the DOJ indicated that the transaction is expected to "increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers." The review also found no evidence that the deal would negatively impact the traditional television business, which is characterized by strong competition for live sports, news, and political commentary.

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The extensive investigatory record reviewed by the Division suggests that the impact of the transaction will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.

Assistant Attorney General Omeed Assefi previously stated that political considerations would not influence the DOJ's review, addressing potential concerns given the business ties of Paramount Skydance leader David Ellison, son of major Trump donor Larry Ellison. Ellison had been pursuing the acquisition since late last year, ultimately reaching a deal in February after a rival bid from Netflix failed.

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Consolidation of markets has led to increased unaffordability, a loss of good-paying job opportunities and fewer choices for consumers.

However, the path to closing the deal is not entirely clear. Paramount still faces potential challenges from state reviews, including one by California. Attorney-General Rob Bonta expressed concerns in February that the merger could further restrict competition, leading to increased costs, job losses, and fewer consumer choices. He reiterated on X that the merger is "not a done deal" and remains under his office's investigation.

Adding to the opposition, over 1,400 Hollywood actors, directors, and filmmakers signed an open letter in April, voicing fears that the combination of two major studios could result in widespread layoffs and diminished opportunities for creators and audiences globally. Concerns were also raised by a Democrat senator.

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The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs and less choice for audiences in the United States and around the world.