DOJ Approves Paramount Skydance Merger With Warner Bros. Discovery, Targets Q3 Close
PSKY•DOJ approved Paramount Skydance’s takeover of Warner Bros. Discovery assets, including CNN and HBO, without requiring divestitures, citing limited competition impact across SVOD, linear TV and film production. Paramount targets closing the merger by end-September, though pending state attorney general lawsuits and EU and UK regulatory reviews could delay completion.
1. DOJ Approval and Conditions
The Department of Justice cleared Paramount Skydance’s proposed acquisition of Warner Bros. Discovery assets, including CNN, HBO and the Warner Bros. movie studio, concluding the merger won’t harm competition in streaming video on demand, linear television or theatrical film production. No divestitures or concessions were imposed, marking an unusually smooth antitrust outcome for a deal of this scale.
2. Pending State Attorney General Lawsuits
A coalition of state attorneys general has vowed to challenge the merger in court, arguing the Trump administration’s approval reflects lax antitrust enforcement. Paramount executives maintain the lawsuit lacks merit but acknowledge it could slow regulatory clearance and final signing.
3. EU and UK Reviews and Closing Schedule
European Union and United Kingdom regulators are conducting separate competition reviews, with verdicts expected to influence the closing timeline. Paramount aims to complete the transaction by the end of September, though internal projections once eyed a July clearance, which now appears unlikely given the pace of overseas reviews.
