Justice Department Approves Paramount-Warner Bros. Merger Amid State Lawsuit Threat
The U.S. Justice Department has cleared Paramount's $111 billion acquisition of Warner Bros., while a coalition of state attorneys general prepares a legal challenge.
The U.S. Justice Department’s Antitrust Division announced Friday that it has approved Paramount Global’s $111 billion purchase of Warner Bros. Discovery, removing a key federal obstacle to the deal. The agency concluded that the transaction will not harm competition in streaming, linear television, or the theatrical film market and could increase competition across the media and entertainment ecosystem.
"We are grateful for the Department of Justice’s thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date," a Paramount spokesperson said, adding that the deal is pro-competitive and will better position the combined company against dominant technology platforms.
The approval does not require divestitures, behavioral remedies or other concessions. It clears the path for Paramount to become the largest theatrical distributor in the United States and to own a top-five streaming service by subscriber count, unless a subsequent regulatory action blocks the merger.
State attorneys general, led by California and joined by New York, Colorado, Oregon, Nevada, Washington, Connecticut and Tennessee, are preparing a lawsuit to contest the merger, a source familiar with the matter said. The states are expected to file the suit within the next month.
Senator Elizabeth Warren urged the attorneys general to pursue the challenge, warning that the deal could concentrate control over media content and pricing.
International regulators in several countries, including Saudi Arabia, Ukraine, Serbia, North Macedonia, Germany, Italy, France, Romania, Slovenia, Belgium, Czechia and New Zealand, have already cleared the transaction under their antitrust and foreign investment rules.
"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 in a statement.