The Department of Justice has approved Paramount Skydance’s proposed $111 billion acquisition of Warner Bros. Discovery, clearing one of the biggest regulatory obstacles to a deal that would reshape the entertainment industry.
According to reports from Politico and CNBC, the DOJ’s Antitrust Division concluded the transaction does not pose a threat to competition and declined to challenge the merger.
The decision paves the way for Paramount to merge with the media giant behind CNN, HBO Max, Warner Bros. Pictures, TBS, TNT, and other major entertainment brands, creating one of the world’s largest media companies.
The approval is expected to be formally announced on Friday.
Federal regulators reportedly approved the deal without requiring Paramount to divest any assets or accept behavioral remedies, conditions that often accompany major media mergers.
The merger has been among the most closely watched antitrust reviews of President Donald Trump’s second term because of its size and its potential impact on the media landscape.
Paramount Skydance CEO David Ellison, son of Oracle founder and Trump ally Larry Ellison, reportedly met personally with DOJ officials multiple times during the review process. According to Politico, Ellison spent roughly two hours meeting with Antitrust Division officials and career attorneys several weeks ago to discuss the transaction and its competitive effects.
Throughout the review, Paramount argued that the merger would strengthen competition by creating a larger media company capable of competing against streaming giants and technology firms that increasingly dominate the entertainment business.
Earlier this year, Netflix briefly pursued its own acquisition proposal for Warner Bros. Discovery before dropping out of the bidding process. According to CNBC, Paramount’s offer values Warner Bros. Discovery at approximately $31 per share.
Despite the federal approval, the deal still faces additional scrutiny.
California Attorney General Rob Bonta, a Democrat, continues to investigate the transaction and could attempt to challenge the merger in court. Attorneys general from several states, including California and New York, monitored portions of the federal review process.
“The Paramount acquisition of Warner Brothers remains an active investigation,” a spokesperson for Bonta’s office told Politico.
The merger must also receive approval from European regulators before it can be finalized. The European Union has opened its own review and set a July deadline for its initial assessment.
On Wednesday, Paramount announced that Australia’s competition regulator had approved the transaction.
Critics of the merger have warned that it could lead to another round of consolidation-related layoffs across Hollywood. Industry unions and some entertainment advocates have argued that the combined company would likely pursue significant cost-cutting measures.
For Paramount and the Ellisons, the DOJ’s decision represents a major victory after months of regulatory scrutiny. The company has said it expects the transaction to close by September if all remaining approvals are secured.
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