The U.S. Justice Department approved Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery after an eight-month antitrust review.
Regulators said the combined Paramount+ and HBO Max platforms could provide a stronger challenger in the streaming market and benefit consumers.
While antitrust concerns have been cleared, the merger must still secure approval from the Federal Communications Commission before it can be completed.
Hollywood's Biggest Deal Yet? DOJ Approves $110 Billion Paramount-Warner Bros Deal
The U.S. Justice Department has approved Paramount Skydance's proposed acquisition of Warner Bros. Discovery, saying the deal is likely to enhance competition across streaming, television, and entertainment
Battle for Warner Bros Ends: Netflix Bows Out of $111 Bn Deal, Paramount Skydance Wins X
Summary
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The U.S. Department of Justice (DOJ) has cleared Paramount Skydance Corp's proposed $110 billion acquisition of Warner Bros. Discovery, concluding that the transaction is unlikely to harm competition or consumers,Reuters reported.
In a statement released on Friday, the DOJ's Antitrust Division said it conducted an eight-month review of the deal, assessing its potential impact on streaming services, traditional television, and the broader film and entertainment industry.
"The extensive investigatory record reviewed by the Division suggests that the impact of the transaction will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers," the DOJ said.
The review involved examining more than 2 million documents collected from around 80 sources across the entertainment sector.
Stronger Competition in Streaming
According to the DOJ, the merger would create a stronger competitor in the streaming market by combining Paramount+ and HBO Max, potentially providing consumers with a more robust alternative to larger streaming platforms.
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The department also found that the transaction is unlikely to negatively affect the traditional television business, where broadcasters continue to compete aggressively for audiences across sports, news, and entertainment programming.
Paramount Welcomes Decision
Paramount welcomed the antitrust clearance, stating that the combined company would be better positioned to compete in an industry marked by intense competition for audiences, talent, technology, and investment.
"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," the company said.
Regulatory Process Continues
While the DOJ has cleared the deal from an antitrust perspective, the transaction still requires approval from the Federal Communications Commission (FCC).
The FCC is currently reviewing a petition related to foreign investment in the deal. The proposed transaction has attracted scrutiny from some U.S. lawmakers over the involvement of foreign investors, including sovereign wealth funds from the Middle East.
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The DOJ's approval marks a significant milestone for the merger, which, if completed, would reshape the global media landscape and create one of the world's largest entertainment companies.