The US Department of Justice has approved Paramount Skydance’s $111 billion acquisition of Warner Bros. Discovery, paving the way for one of the largest media mergers in recent history and a major expansion of a Hollywood empire backed by billionaire financier Larry Ellison.
The Justice Department’s Antitrust Division said on Friday that the deal was “not likely to result in harm to competition or American consumers,” adding that it could potentially enhance competition in the media and streaming sectors. The approval was granted without requiring any modifications to the agreement, concluding an eight-month regulatory review.
The decision marks a significant victory for Paramount chief executive David Ellison, whose father, Oracle co-founder Larry Ellison, provided substantial financial backing for the transaction. Larry Ellison is also known to be a close ally of US President Donald Trump.
The deal had faced political scrutiny in Washington. A group of Democratic senators, led by Elizabeth Warren, previously warned that the acquisition could be influenced by political favoritism and urged regulators to assess the transaction strictly on legal and competitive grounds.
The approval follows a heated bidding war in which Paramount ultimately prevailed over Netflix for control of Warner Bros. Discovery’s assets. The combined company will control a vast portfolio of entertainment and news properties, including CNN, Warner Bros. Pictures, and the HBO Max streaming platform.
Despite federal approval, the merger still faces additional legal and regulatory challenges. A coalition of about 10 US states led by California is preparing an antitrust lawsuit, according to reports, while California Attorney General Rob Bonta’s office has confirmed that the acquisition remains under active investigation. The European Commission is also reviewing the deal.
The merger has sparked concern within parts of Hollywood, where hundreds of actors and filmmakers have signed a letter opposing the consolidation, warning it could reduce production opportunities in an industry already undergoing significant restructuring and cost-cutting.
In response, the Justice Department rejected claims that the merger would reduce output, stating that available evidence did not support fears of diminished competition or content production.
The deal originated amid intense competition last year when Netflix and Paramount both pursued Warner Bros. Discovery’s extensive film and television catalogue. While Netflix initially appeared to be a frontrunner, Paramount steadily increased its offer until the streaming giant withdrew from the bidding process.
With regulatory clearance from the federal government now secured, Paramount’s acquisition of Warner Bros. Discovery moves one step closer to reshaping the global media landscape.
