DOJ Clears Paramount’s $110 Billion Warner Bros. Discovery Deal

The U.S. Justice Department has cleared Paramount Skydance Corporation’s planned acquisition of Warner Bros. Discovery, concluding that the roughly $110 billion media merger is unlikely to harm competition or American consumers.

The Antitrust Division announced the decision Friday after an eight-month investigation and did not require Paramount to sell assets, accept operating restrictions, or make other concessions.

The deal would bring together two major Hollywood studios and a wide collection of film, television, news, and streaming properties. Warner Bros. Discovery owns Warner Bros. Pictures, CNN, HBO, and the HBO Max streaming service, while Paramount’s holdings include Paramount Pictures, CBS, and Paramount+.

Combining HBO Max and Paramount+ would create a streaming service with approximately 200 million subscribers, Politico reported. The transaction would also bring the companies’ studios, television networks, sports rights, and large content libraries under one owner.

Paramount argues that the larger company would be better positioned to compete with Netflix, Disney, and technology companies that have expanded into entertainment. The company said the merger would increase investment in programming and strengthen its position across streaming, traditional television, and film.

Justice Department officials reviewed more than 2 million documents, took testimony, and examined the deal’s possible effects across the entertainment industry. The Antitrust Division said the evidence did not show that the merger was likely to harm competition.

Section 7 of the Clayton Act is a federal antitrust law that governs mergers and acquisitions. The law allows the government to challenge a deal when its likely effect would be to substantially reduce competition. Regulators do not have to wait until consumers or workers have already been harmed. Federal officials may act before a merger closes when the evidence shows that combining the companies would remove an important rival or give the combined business too much control over part of the market.

Under that standard, Justice Department investigators examined the deal’s possible effects on streaming, television, film, advertising, and the market for creative talent. The review included whether the combination could affect prices and consumer choice, increase control over programming, or give the company greater leverage over workers and suppliers.

Entertainment workers and industry groups have opposed the transaction, warning that further consolidation could lead to layoffs, fewer buyers for creative work, and less variety in film and television production. Antitrust law also protects competition among employers. A merger can draw scrutiny when fewer studios are competing to hire the same writers, actors, directors, and production crews, potentially weakening workers’ bargaining power.

Paramount expects more than $6 billion in savings within three years after the acquisition closes. The company said most would come from areas other than labor, while Hollywood workers remain concerned that the deal could lead to another round of job cuts.

Other government reviews remain unresolved. California Attorney General Rob Bonta’s office said its investigation is continuing, while California, New York, and other states have reportedly weighed a lawsuit seeking to stop the transaction.

The acquisition also remains under review by the Federal Communications Commission, which is examining the foreign investment behind the deal and the communications licenses involved.