The US Justice Department’s Anti-trust Division on Friday (US time) cleared Paramount Skydance’s $111 billion bid for Warner Bros. Discovery. The approval allows the companies to move closer to combining their film, television, and streaming operations under one group.
According to a report by Politico, officials reviewed the deal for about eight months before concluding that the merger did not harm competition in a way that required legal action. The department did not demand any asset sales, restrictions, or conditions. It said the evidence did not show likely harm to consumers or rivals, reported Politico.
The deal brings together two major Hollywood studios. It combines the Warner Bros. film and TV studio business, CNN and the HBO Max streaming service with Paramount’s assets, including Paramount+. The merged platform would target roughly 200 million subscribers. The companies expect stronger scale in streaming and content production.
A spokesperson for the Antitrust Division told Politico that investigators reviewed over 2 million documents, held depositions, and coordinated with state attorneys general. The statement said the review found that the merger “is not likely to result in harm to competition or American consumers.” It also said the combined company could strengthen competition in streaming, television, and film.
A Paramount spokesperson welcomed the decision. The company said the merger would create a stronger competitor against large technology platforms, reported Politico. It also said the new structure would improve competition for audiences, talent, and investment. The company now focuses on closing the transaction.
What does DOJ decision change for deal?
The federal approval removes the biggest national-level challenge to the merger. It allows Paramount Skydance and Warner Bros. Discovery to proceed with integration planning. However, the deal still faces state-level review.
California Attorney General Rob Bonta continues to examine the transaction. His office said the investigation remains open. He still holds the option to challenge the deal in court, even after federal approval.
Executives from Paramount defended the merger during the review process. Chief Legal Officer Makan Delrahim told Politico that the deal would increase competition by creating a stronger rival to streaming leaders such as Netflix. He said that the merger would expand film production and theatrical releases.
Opposition from parts of Hollywood continues despite the federal clearance. Industry groups and workers worry about job cuts and consolidation. They expect cost savings targets to affect employment and reduce opportunities for creators.
Paramount executives estimated over $6 billion in cost savings within three years. The company said most savings would come from non-labour areas, reported Politico. Critics said that large mergers in media often reduce staffing and centralize decision-making power.
Paramount accused Netflix of opposing the deal through lobbying efforts. Netflix rejected that claim and called it inaccurate. The dispute added political pressure around the review process.
The deal still requires final approvals before completion. If it closes, it would bring together major media assets including CNN, HBO Max, and Paramount+, reported Politico.