The Department of Justice’s Antitrust Division has approved Paramount’s $111 billion acquisition of Warner Bros. Discovery, clearing a major regulatory hurdle for one of the largest media mergers in recent history despite significant opposition from entertainment workers and state regulators.
The approval, announced June 12, came after an eight-month investigation that reviewed more than 2 million documents and included hours of depositions and testimony from senior executives. The DOJ determined the transaction would not harm competition across streaming video on demand, linear television, or theatrical film production.
Notably, the department approved the merger without requiring any divestitures, behavioral remedies, or concessions from Paramount. The Antitrust Division stated it found “the transaction is not likely to result in harm to competition or American consumers” and suggested the deal could actually increase competition by creating a stronger rival to Netflix and other streaming giants.
Three weeks before the decision, Paramount CEO David Ellison spent roughly two hours meeting with DOJ Antitrust Division officials, including career staff attorneys, according to reporting by Politico. During the session, officials pressed Ellison with detailed questions about competitive effects until satisfied they had exhausted their concerns. Representatives from roughly half a dozen state attorneys general, including California and New York, were permitted to listen in and participate in the Division’s depositions through the parties’ voluntary waivers of confidentiality.
The merger would combine two historic Hollywood rivals into a single company controlling major studios, CNN, and the HBO Max streaming service. The combined entity would offer approximately 200 million subscribers across its streaming platforms—Paramount+ and HBO Max would merge into a single offering. Paramount Skydance announced the definitive agreement with Warner Bros. Discovery on February 27, 2026, following a competitive bidding process in which Netflix had initially made its own offer before withdrawing.
State Legal Challenges Remain Likely
Despite the federal approval, the merger faces continued legal scrutiny from state attorneys general. California Attorney General Rob Bonta stated that the transaction “remains under investigation by the California Department of Justice,” signaling the state could still pursue a lawsuit to block the deal. Reuters reported in early June that California, New York, and other unnamed states were preparing a lawsuit to challenge the acquisition, with sources saying the legal challenge would come in the coming weeks.
The DOJ’s approval does not end the regulatory review process entirely. The European Union has set a provisional July 14 deadline for its own assessment of the transaction, and the United Kingdom’s Competition and Markets Authority has launched a separate investigation that could delay the deal into 2027.
The decision reflects the DOJ’s conclusion that the entertainment industry remains highly dynamic despite decades of consolidation. The Antitrust Division noted in its statement that streaming has disrupted legacy distribution models, with newer platforms like Netflix, Amazon, and Disney successfully challenging traditional media companies. Paramount and Warner Bros., the division found, entered the streaming market relatively late compared to these larger competitors and would benefit from combining to offer consumers a more robust alternative.
Paramount has promised to close the acquisition by September 30, 2026. The company’s Chief Operating Officer Andy Gordon told analysts in March the deal would generate more than $6 billion in synergies within three years, with most savings coming from non-labor sources. However, Hollywood workers and labor unions fear the merger could trigger mass layoffs in an industry already reeling from years of consolidation and the effects of recent strikes by writers and actors.
Sources
- Politico — DOJ approval announcement, David Ellison meeting details, state attorneys general participation
- Department of Justice — Official statement on investigation findings, scope of review, competitive analysis across streaming, linear TV, and theatrical release
- Reuters — State attorneys general preparing lawsuit, California and New York involvement
- NBC News — DOJ determination that merger would not harm competition
- The New York Times — David Ellison background, Warner Bros. acquisition details
- Variety — Approval without conditions, EU deadline for review
