US Clears Paramount-Skydance’s $110B Warner Bros. Discovery Acquisition

The U.S. Justice Department’s Antitrust Division has cleared Paramount Skydance Corp’s $110 billion acquisition of Warner Bros Discovery, stating it is unlikely to harm competition or consumers.

After eight months of evaluation focusing on the impact on streaming services, traditional television and film industry, the DOJ concluded that the transaction would increase competition across media and entertainment sectors, benefiting American consumers and workers.

The Justice Department noted in a statement released Friday that extensive investigatory records suggest the deal’s impact will be to boost competition within the media ecosystem.

Paramount CEO David Ellison’s father, billionaire Larry Ellison, has ties with President Donald Trump, and the company has hired former Trump officials. Assistant Attorney General Omeed Assefi emphasized politics would not influence the DOJ’s review of the transaction.

Paramount thanked the DOJ for its review, stating it will allow the firm to better compete in an industry defined by a fierce scramble for audiences, talent, technology, and investment. The company said it remains focused on completing the deal as soon as possible and delivering benefits to consumers, creators, and the entertainment industry.

The Federal Communications Commission has not yet approved a petition seeking approval for foreign interests, including Gulf sovereign wealth funds, to own up to 100% of the proposed $110 billion deal. Democratic senators raised concerns about Middle Eastern sovereign wealth funds and Chinese companies taking part in the deal, citing media reports that China’s Tencent may participate.

The family of Paramount CEO David Ellison will continue to control voting shares. Paramount said new foreign investors, which will receive only non-voting equity, will not have any ability to influence editorial decision-making.

The DOJ reviewed over 2 million documents from 80 sources when evaluating the deal’s impact on various segments of the entertainment industry. It concluded that a combined Paramount+ and HBO Max would create a stronger alternative to larger streaming services and increase competition in a way that would benefit consumers.

The traditional television business is also likely to see increased competition, as Paramount and Warner Bros compete with smaller independent studios such as A24 and newcomers like Apple and Netflix, which have signaled continued interest in theatrical releases. Since the deal was announced, theatrical production has increased, according to the DOJ.

The DOJ dismissed comparisons to the $71 billion merger of Walt Disney and Twenty-First Century Fox, which closed in 2019 before the COVID-19 outbreak significantly changed audience consumption patterns. The DOJ found that Disney has substantially increased its spending on content since then. However, several Hollywood figures have expressed concerns that the merger could result in fewer jobs and less diversity in storytelling.

California Attorney General Rob Bonta posted on X that the proposed merger of Warner Bros and Paramount remains under investigation by his office.