The Justice Department has signed off on Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, clearing the way for a merger that will unite two historic Hollywood studios and reshape the American entertainment industry.
In a statement, the department said it determined that the massive merger was “not likely to result in harm to competition or American consumers.”
The Justice Department said it reached that conclusion after receiving extensive feedback.
“Over the course of a rigorous eight-month investigation led by the Division’s career staff, the Division received from the Parties over two million documents,” it said in a statement. It also said that it heard “extensive” advocacy from third parties during the process.
The news was first reported by Politico.
Paramount owns a 114-year-old film studio, the Paramount+ streaming service and the CBS broadcast network. Warner owns a 116-year-old film studio, the HBO Max streaming service and a suite of cable channels, including CNN.
Paramount Skydance CEO David Ellison has vowed to “honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company.” The 43-year-old media executive is the son of technology magnate Larry Ellison, the co-founder of Oracle and an ally of President Donald Trump.
But the deal has faced blowback from some Hollywood professionals and government regulators.
In an open letter released in April, more than 1,000 entertainment professionals said the deal would “further consolidate an already concentrated media landscape, reducing competition at a moment when our industries — and the audiences we serve — can least afford it.”
The merger could draw legal challenges from state attorneys general. California Attorney General Rob Bonta has said his office is investigating the tie-up, and a person familiar with the matter said New York Attorney General Letitia James’ office is part of that probe.
Sen. Elizabeth Warren, D-Mass., who has publicly advocated against the deal, said the Justice Department’s green light was “terrible news for every American.”
“This fight isn’t over,” Warren said in a post on X. “State AGs must block this merger.”
Bonta’s office said its investigation was ongoing and otherwise declined to comment on the Justice Department’s move.
European Union officials are reviewing the merger over the deal’s financial backing from three Middle Eastern sovereign wealth funds. In an April filing with the U.S. Securities and Exchange Commission, Paramount said its acquisition of Warner is backed in part by Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’IMAD Holding and the Qatar Investment Authority.
In recent weeks, Ellison’s Paramount has been under scrutiny over major shake-ups at CBS News, where his appointed editor-in-chief, Bari Weiss, fired multiple “60 Minutes” correspondents at the end of the most recent season.