Paramount Skydance’s $US111b acquisition of Warner Bros Discovery has been approved by the US Department of Justice, the BBC reports.
The DOJ said in a statement that its “rigorous” investigation of the proposed deal found it was “not likely to result in harm to competition or American consumers,” but would “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”
However, it’s not a done deal, yet.
Rob Bonta, California’s Attorney General, said in late February that “he was concerned any takeover of Warner Bros would further consolidate and limit competition in the entertainment industry, which has seen layoffs and cuts in recent years.”
Earlier this month, Bonta said he would soon decide on taking formal legal action to block the merger. A spokesperson for Bonta told the BBC said there was no update on that review and said it “remains under investigation”.
In April, more than 1,400 Hollywood actors, directors and filmmakers signed an open letter opposing the merger.
“The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world,” the petition says.
The pending sale has been controversial for another reason; David Ellison, the leader of Paramount, is the son of Larry Ellison, a major donor to President Donald Trump.
This year, Paramount’s control of CBS News and 60 Minutes has come under intense scrutiny for decisions made by new editor-in-chief Bari Weiss, whoi some say favour the Trump administration, including the firing long-term staff and journalists.
Warner Bros $111bn deal with Paramount controversially approved
The industry’s concerns stem from when Skydance merged with Paramount in 2025 and cut 10% of its workforce.
But Paramount executives have said it was looking forward to what they say will be billions of dollars in cost-savings.
The BBC reports that by taking over Warner Bros, Paramount will become one of the most powerful forces in Hollywood, adding CNN, HBO, TBS, TNT, TCM, DC Studios and New Line Cinema to its stable of assets. Those include Paramount Pictures, CBS, Showtime and Nickelodeon.