Justice Department Clears Paramount-Skydance Purchase of Warner Bros. Discovery
The U.S. Justice Department has approved Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery, stating the merger is unlikely to harm competition or consumers, while regulators and some lawmakers continue to scrutinize the deal.
The U.S. Justice Department announced it has approved Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery, concluding the transaction is "not likely to result in harm to competition or American consumers." The agency said the decision followed an eight-month investigation that involved reviewing more than two million documents submitted by the parties and hearing extensive input from third-party stakeholders.
Paramount controls the historic Paramount film studio, the Paramount+ streaming service and the CBS broadcast network, while Warner Bros. Discovery owns the Warner film studio, the HBO Max streaming platform and a portfolio of cable channels including CNN.
CEO David Ellison said the combined company will "honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company." The deal has attracted criticism from industry professionals and some elected officials. More than 1,000 entertainment workers signed an open letter in April warning that the merger would further concentrate media ownership.
California Attorney General Rob Bonta confirmed his office is investigating the transaction, and New York Attorney General Letitia James is also reported to be reviewing it. Senator Elizabeth Warren called the Justice Department's approval "terrible news for every American" and urged state attorneys general to block the merger.
European Union regulators are examining the deal as well, focusing on its financing, which includes investments from Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’IMAD Holding and the Qatar Investment Authority.