U.S. Justice Department Clears Paramount-Warner Bros. Discovery Mega-Merger

The U.S. Justice Department has approved Paramount’s $111 billion merger with Warner Bros. Discovery, clearing a major hurdle for creating what the companies say would be the world’s largest media and entertainment group. The decision came after an eight-month review that involved more than two million documents from over 80 parties. The department said it had completed its examination and found the deal would not harm competition or American consumers.

Paramount said in a statement that it appreciated the thorough review and noted that other regulators who examined the transaction had also approved it. The deal was finalized in February after a prolonged bidding battle with Netflix. It would combine major assets including HBO, CNN, CBS, Paramount Studios and Warner Bros. Studios under one roof.

The approval is a significant milestone for Oracle founder Larry Ellison and his son David Ellison, who is set to run the combined company, as they move to build one of the biggest media groups in the world. President Donald Trump praised the merger and said Ellison’s management would help address what he calls political bias at CNN. David Ellison has not publicly promised to change the network’s editorial direction, though his decision to appoint Bari Weiss to lead CBS News was seen as an attempt to reassure Trump.

The new company expects its size to help it compete with Big Tech and streaming rivals, but federal approval does not eliminate all regulatory risk. Some state attorneys general could still try to challenge the deal, although people close to the companies doubt such efforts will succeed. California Attorney General Rob Bonta said his office’s investigation is still ongoing. Senator Elizabeth Warren reacted sharply, urging state attorneys general to block the merger, saying, “This is terrible news for any American who does not want billionaires linked to Trump controlling what they watch.”