US Justice Department Approves Paramount-Warner Bros. Discovery Megamerger

The U.S. Department of Justice (DOJ) has approved the acquisition of Warner Bros. Discovery by Paramount Skydance, a megamerger valued at $111 billion that will create one of the world's largest media conglomerates. The DOJ's Antitrust Division concluded an eight-month investigation without requiring any divestitures or concessions, stating the deal is unlikely to harm competition and may even increase it Source: Infobae.

Approval Details

The DOJ's review focused on streaming, linear TV, and film production. The agency determined that the industry is "highly dynamic" and the merger would not hurt consumers Source: CNN. Paramount CEO David Ellison, whose father Larry Ellison (Oracle co-founder and Trump ally) financed the deal, thanked the DOJ for its "thorough review" Source: CNN. The combined company will control Paramount, Warner Bros., CNN, CBS News, HBO Max, and Paramount+, with about 200 million streaming subscribers Source: El País.

Ongoing Legal Challenges

Despite federal approval, the merger faces potential lawsuits. A coalition of at least 10 states, led by California, is preparing an antitrust suit to block the deal, with filings expected within a month Source: Infobae. California Attorney General Rob Bonta confirmed an "active investigation" Source: CNN. The merger also awaits clearance from regulators in the European Union and the United Kingdom Source: El País.

Industry Reaction

Hollywood has expressed concern, with hundreds of actors and directors signing a letter opposing the merger, warning of possible job cuts and reduced production Source: EMOL. The DOJ countered that evidence does not show the deal would lower output Source: EMOL. Paramount expects to close the transaction by the third quarter of 2026 Source: CNN.