U.S. Justice Department Clears Paramount Skydance-Warner Bros. Discovery Merger to Advance

The U.S. Justice Department has approved the $111 billion merger between Paramount Skydance and Warner Bros. Discovery, removing a major obstacle for a deal that could reshape the media industry. The approval lets Paramount’s bid for the Hollywood studio owner, which controls CNN and HBO among other assets, move forward, though the transaction is not yet final.

Warner Bros. Discovery shareholders approved the deal in April. The merger has faced controversy from the start, including Paramount’s battle with Netflix for Warner, antitrust scrutiny, and political concerns. David Ellison, who leads Paramount, is the son of Larry Ellison, a major donor to President Donald Trump.

The Justice Department said it conducted a “rigorous” review and concluded the proposed deal was “not likely to result in harm to competition or American consumers.” It said the merger should instead “increase competition across the media and entertainment world, with benefits for American consumers and workers.” California and other states are still reviewing the sale and could sue to try to stop it. California Attorney General Rob Bonta said in late February he was worried any Warner Bros. acquisition would deepen concentration and weaken competition in an industry hit by layoffs and cuts, and earlier this month he said he would soon decide whether to take formal legal action. His office told the BBC the investigation is “still under investigation.”

More than 1,400 Hollywood actors, directors and filmmakers signed an open letter in April opposing the merger, warning it would mean fewer opportunities, fewer production jobs, higher costs and less choice for audiences in the U.S. and abroad. Paramount and Skydance merged in 2025, and the combined company cut about 10% of its workforce. Paramount executives say the Warner Bros. purchase would deliver billions of dollars in cost savings and make the company one of Hollywood’s most powerful players, adding CNN, HBO, TBS, TNT, TCM, DC Studios and New Line Cinema to its existing portfolio of Paramount Pictures, CBS, Showtime and Nickelodeon. Paramount’s control of CBS News and “60 Minutes” has also drawn criticism over decisions critics say favored the Trump administration, including a new management team that fired veteran employees and well-known journalists.