Department of Justice Approves Paramount's Acquisition of Warner Bros. Discovery

The Department of Justice (DOJ) has approved Paramount Skydance’s proposed $111 billion acquisition of Warner Bros. Discovery, removing a significant regulatory hurdle for the deal. Reports from Politico and CNBC indicate that the DOJ's Antitrust Division determined the merger does not threaten competition and chose not to challenge it. This approval allows Paramount to merge with Warner Bros. Discovery, which includes major brands such as CNN, HBO Max, and Warner Bros. Pictures, potentially creating one of the largest media companies globally. The formal announcement of the approval is expected on Friday. Federal regulators approved the deal without requiring Paramount to divest any assets or accept behavioral remedies, which are common in major media mergers. The merger has been closely monitored during President Donald Trump’s second term due to its size and potential impact on the media landscape. Paramount Skydance CEO David Ellison reportedly met with DOJ officials multiple times during the review process. Throughout this period, Paramount argued that the merger would enhance competition by forming a larger company capable of competing with streaming giants. Earlier this year, Netflix had also considered acquiring Warner Bros. Discovery but withdrew from the bidding. Paramount's offer values Warner Bros. Discovery at approximately $31 per share. Despite federal approval, the deal is still under scrutiny, with California Attorney General Rob Bonta continuing to investigate and potentially challenge the merger in court. The merger also requires approval from European regulators, with the European Union conducting its review and setting a July deadline for an initial assessment. On Wednesday, Paramount announced that Australia’s competition regulator had approved the transaction. Critics of the merger have expressed concerns about potential layoffs in Hollywood due to consolidation. Paramount anticipates that the transaction will close by September if all remaining approvals are obtained.