The Justice Department has approved Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, paving the way for a merger that will bring together two iconic Hollywood studios and transform the American entertainment landscape.
Subscribe to access this story without ads
Enjoy unlimited ad-free articles and exclusive content.
In an official statement, the department noted that it found the significant merger “not likely to harm competition or American consumers.”
The Justice Department stated that this conclusion came after gathering extensive feedback.
“During an in-depth eight-month investigation conducted by the Division’s professional staff, the Division reviewed over two million documents submitted by the Parties,” it indicated. It also noted receiving “extensive” feedback from third parties throughout the process.
The news was first reported by Politico.
Paramount operates a 114-year-old film studio, the Paramount+ streaming service, and the CBS broadcast network. Warner runs a 116-year-old film studio, the HBO Max streaming service, and a collection of cable channels, including CNN.
Paramount Skydance CEO David Ellison has committed to “honor the legacy of two iconic companies while advancing our vision of establishing a next-generation media and entertainment enterprise.” The 43-year-old media executive is the son of technology entrepreneur Larry Ellison, co-founder of Oracle and a supporter of President Donald Trump.
However, the deal has encountered resistance from some Hollywood professionals and governmental regulators.
In an open letter published in April, over 1,000 entertainment industry figures expressed that the deal would “further consolidate an already concentrated media sector, diminishing competition at a time when our industries — and the audiences we serve — can least afford it.”
Legal challenges from state attorneys general could arise in relation to the merger. California Attorney General Rob Bonta has announced that his office is currently investigating the merger, and sources indicate that New York Attorney General Letitia James’s office is also involved in that inquiry.
Sen. Elizabeth Warren, D-Mass., who has openly opposed the merger, commented that the Justice Department’s approval is “terrible news for every American.”
“This fight isn’t over,” Warren stated in a post on X. “State AGs must prevent this merger.”
Bonta’s office stated that its investigation is ongoing but declined to comment on the Justice Department’s decision.
European Union authorities are examining the merger due to its financial backing from three Middle Eastern sovereign wealth funds. In an April filing with the U.S. Securities and Exchange Commission, Paramount indicated that its acquisition of Warner is partially financed by Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’IMAD Holding, and the Qatar Investment Authority.
Recently, Ellison’s Paramount has come under scrutiny following significant changes at CBS News, where his appointed editor-in-chief, Bari Weiss, terminated several “60 Minutes” correspondents at the end of the latest season.
