US Justice Department Clears $111 Billion Paramount-Warner Bros. Deal
WBD•The US Justice Department approved Paramount Skydance’s $111 billion acquisition of Warner Bros. Discovery without imposing conditions after an eight-month antitrust review. A coalition of states led by California and the European Commission is preparing antitrust lawsuits despite DOJ’s finding that the merger is unlikely to reduce competition.
1. Federal Approval Granted
The Justice Department’s Antitrust Division concluded that Paramount Skydance’s $111 billion takeover of Warner Bros. Discovery is not likely to harm competition or consumers. After an eight-month review, regulators signed off on the deal without demanding divestitures or structural remedies, clearing a major regulatory hurdle for one of the largest media mergers in history.
2. Financing and Bidding War
Paramount chief executive David Ellison sealed the winning bid with financial backing from his father, Oracle co-founder Larry Ellison, outbidding Netflix after a fierce contest for Warner Bros.’ prized back catalog. The parental guarantee convinced the Warner Bros. Discovery board to accept Paramount’s final offer, ending a protracted bidding war.
3. Ongoing Legal Challenges
Despite federal approval, a coalition of roughly 10 states led by California is preparing an antitrust lawsuit to block or modify the merger, with California’s attorney general characterizing the acquisition as under active investigation. Meanwhile, the European Commission has opened its own review, signaling continued regulatory scrutiny in multiple jurisdictions.
4. Industry Reaction and Implications
Hundreds of actors and directors have publicly opposed the merger, warning it could stifle content production amid decades of industry consolidation and cost-cutting. The Justice Department disputed these concerns, asserting evidence does not show a decline in output, but Hollywood stakeholders remain uneasy about the potential for diminished competition and creative opportunities.
