Justice Department clears Paramount's $111bn purchase of Warner Bros Discovery, but EU and states could still block the deal
The US Department of Justice gave the green light to Paramount Skydance's $111 billion acquisition of Warner Bros Discovery on Friday, declaring the deal would not harm competition or American consumers. The unconditional approval removes a major regulatory hurdle, but the merger still faces scrutiny in the UK, European Union, and a likely lawsuit from US state attorneys general.
DOJ clears path without conditions
The US Justice Department's antitrust division concluded an eight-month review on Friday by finding that Paramount Skydance Corp's $111 billion purchase of Warner Bros Discovery was not likely to harm competition or American consumers. The agency examined streaming video on demand, linear television, and the development, production and distribution of theatrical films. The approval required no divestitures, behavioral remedies or concessions, according to Politico.
The Division has completed its analysis of the proposed merger of Paramount and Warner Bros and determined based on the evidence received in its investigation that the transaction is not likely to result in harm to competition or American consumers, including with respect to: (1) streaming video on demand (“SVOD”); (2) linear television; and (3) studio development, production, or distribution of films for theatrical release.
The green light removes the most significant US federal obstacle to a deal that would combine Paramount's CBS News, Paramount+ and its Hollywood studio with Warner's CNN, HBO and Warner Bros. The combined streaming services would count roughly 200 million subscribers, making it one of the largest content platforms globally.
Regulatory battlefields: UK, EU and US states
While Washington cleared the path, the transaction remains under scrutiny elsewhere. The UK's Competition and Markets Authority opened an investigation earlier this week, with an August 7 deadline to decide whether a deeper review is needed. European Union authorities are separately examining the funding structure — three Gulf sovereign-wealth funds committed $24 billion — and have set a July target for their assessment.
At home, a coalition of state attorneys general led by California is preparing a lawsuit expected to be filed within a month. New York, Colorado and several other states are in talks to join. California Attorney General Rob Bonta said his office had opened an investigation and intends to be "vigorous" in its review.
This is terrible news for every American who doesn't want Trump-aligned billionaires to control what they watch and how much they pay. The Paramount-Warner Bros. deal has reeked of corruption and influence-peddling. This fight isn't over.
The DOJ acknowledged that state attorneys general participated in its own probe.
Other nations have already signed off
Regulators in Australia gave the green light on Tuesday, concluding the deal was unlikely to substantially lessen competition in wholesale film supply. Paramount legal chief Makan Delrahim also stated that authorities in Saudi Arabia, Ukraine, Serbia and North Macedonia had found no competition violations. FDI authorities in Germany, Italy, France, Romania and Slovenia have not raised objections, according to the company.
- Australian Competition and Consumer Commission approves the deal, finding no substantial lessening of competition.
- US Department of Justice clears the merger without conditions.
- EU reviews expected to conclude; regulators examine the role of Gulf sovereign-wealth funds.
- UK Competition and Markets Authority deadline to decide whether a more in-depth investigation is necessary.
Ellison ties and newsroom anxieties
Editorial and strategic control stays with David Ellison, whose father Larry Ellison — Oracle's founder and a close Trump associate — is a powerful backer. Journalists at CBS News and CNN have voiced fears that the two newsrooms could be merged, with the promised $6 billion in synergies likely to mean large job cuts. Some staffers worry about an editorial realignment given the family's ties to the administration.
Paramount insists the deal is pro-competitive. "This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms," a spokesperson said. The company has pledged to release at least 30 theatrical films a year with a minimum 45-day exclusive window.
