The U.S. Justice Department’s Antitrust Division has officially cleared Paramount Skydance Corp.’s $110 billion acquisition of Warner Bros. Discovery, concluding that the mega-merger is unlikely to harm market competition or consumer interests.
The decision concludes an intensive eight-month investigation into how the massive consolidation would impact the streaming, television, and film sectors.
In a statement released on Friday, the Justice Department noted that its exhaustive review indicates the transaction could actually stimulate market dynamics.
“The extensive investigatory record reviewed by the Division suggests that the impact of the transaction will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers,” the Justice Department wrote in a statement.
The transaction has drawn public scrutiny due to the political ties tied to the deal. Paramount CEO David Ellison’s father, billionaire Oracle co-founder Larry Ellison, maintains a relationship with President Donald Trump, and the company recently appointed several former Trump administration officials.
Despite this, Assistant Attorney General Omeed Assefi previously maintained that the evaluation would strictly follow the law and that politics would “absolutely not” sway the division’s review.
Paramount welcomed the federal clearance, describing the merger as an essential step to remaining viable in an entertainment sector currently defined by an aggressive race for viewers, creative talent, and technological development.
“We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators and the entertainment industry as a whole,” Paramount said.
Even with the Justice Department’s unconditional approval, the transaction faces remaining hurdles. The Federal Communications Commission (FCC) has yet to sign off on a petition regarding foreign ownership stakes in the $110 billion deal.
Democratic lawmakers have raised concerns over multi-billion dollar funding from Saudi Arabia, Qatar, and Abu Dhabi sovereign wealth funds, alongside potential investments from China’s Tencent, particularly because the combined company would control prominent news assets like CBS and CNN.
In response to those regulatory concerns, Paramount specified in a recent disclosure that the incoming foreign entities will hold non-voting equity and will lack the power to impact editorial operations. Voting control will stay entirely with the family of CEO David Ellison.