Justice Department clears Paramount's $111 billion acquisition of Warner Bros. Discovery

The U.S. Justice Department announced on Friday that it has approved Paramount Global's $111 billion bid to acquire Warner Bros. Discovery. In a statement, the agency said its antitrust review found no risk to competition or consumers in the film, broadcast television or streaming markets.

The department’s Antitrust Division argued that the growth of the streaming sector, which includes rivals such as Netflix, Apple and Amazon as well as smaller services, provides sufficient competition to offset any concentration from the deal. It added that consumers will continue to have many alternatives for entertainment.

California Attorney General Rob Bonta, who is conducting a separate state investigation, said the merger remains under review by his office. The European Union is also examining the transaction.

Paramount described the transaction as “pro-competitive,” saying it will create a stronger company capable of competing with dominant technology platforms in an industry defined by intense competition for audiences, talent, technology and investment. The company said it intends to close the merger quickly and deliver benefits to consumers, creators and the broader entertainment sector.

If completed, the deal would place media executive David Ellison, son of Oracle co-founder Larry Ellison, in charge of Warner Bros. studio and its cable and streaming assets, including CNN and HBO. The Ellison family took control of Paramount and CBS last summer.

Industry critics have voiced concerns that the consolidation could further concentrate media ownership and affect jobs and creative output. In April, a group of directors, actors and writers, including Kristen Stewart, Pedro Pascal and Javier Bardem, signed an open letter opposing the merger. Some observers also noted the Ellisons' political connections and expressed worries about potential editorial shifts at CNN.

"The merger of Warner Bros. and Paramount is not a done deal and remains under investigation by my office," California Attorney General Rob Bonta posted on social media.

The Justice Department’s approval clears a major regulatory hurdle, but the transaction still faces state and international scrutiny.