DOJ clears Paramount's $110 billion Warner Bros. Discovery acquisition
The U.S. Justice Department has given its antitrust approval for Paramount Global’s purchase of Warner Bros. Discovery, while state attorneys general and some lawmakers continue to scrutinize the deal.
The Justice Department announced Friday that it has approved Paramount Global’s pending $110 billion acquisition of Warner Bros. Discovery. The approval, confirmed by multiple sources, came without any notable concessions from Paramount to the agency, according to those familiar with the review.
Paramount said it was "grateful for the Department of Justice’s thorough review" and described the transaction as "pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms". The company added that it aims to close the deal by Sept. 30 and will impose a daily penalty on shareholders if the deadline is missed.
State attorneys general in California, New York and several other states have indicated they may file antitrust actions to block the merger. California Attorney General Rob Bonta said his office is still investigating the acquisition and has no updates to share.
In the United Kingdom, the Competition and Markets Authority opened a merger inquiry and set an Aug. 7 deadline to assess whether the deal could substantially lessen competition. A finding of concern could trigger a second-phase investigation lasting up to five months.
European regulators are also reviewing the transaction. The EU’s Phase 1 antitrust probe is due to conclude by July 7, with a possible Phase 2 thereafter, while the European Commission will decide by mid-July whether to open a full investigation under its foreign subsidies rules.
Senator Elizabeth Warren criticized the DOJ’s decision, calling the merger "terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay." She urged state attorneys general to block the deal.
U.S. lawmakers have asked Treasury Secretary Scott Bessent, chair of the Committee on Foreign Investment in the United States, to examine any national-security risks linked to foreign equity investors, including sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi that are providing $24 billion in financing.
The DOJ’s clearance is expected to influence pending state-level challenges, as courts may question why the transaction is deemed problematic at the state level but not by federal authorities.