DOJ Approves Paramount Skydances $111 Billion Takeover of Warner Bros. Discovery

The U.S. Department of Justice (DOJ) announced on Friday, June 12 2026 that it has approved Paramount Skydance’s proposed acquisition of Warner Bros. Discovery. The $111 billion deal, which was first announced on February 27 2026, is now cleared of its most significant regulatory obstacle.

The DOJ’s Antitrust Division stated that the merger is “not likely to result in harm to competition or American consumers.” The decision follows an eight‑month review that examined the potential impact on the film, television, and streaming markets. The approval removes the last federal hurdle, but the transaction still requires final clearance from state attorneys general and a shareholder vote that is expected in early spring 2026.

Paramount Skydance was created on August 7 2025 after the Federal Communications Commission approved the merger of Paramount Global and Skydance Media. The new company combines Paramount Pictures, Skydance’s production and financing assets, and the streaming service Paramount+. Warner Bros. Discovery, formed in 2022 from the merger of WarnerMedia and Discovery Inc., owns the Warner Bros. studio, HBO, DC Entertainment, and several cable networks such as Cartoon Network and HGTV.

The DOJ’s statement emphasized that the combined entity would not substantially lessen competition in the markets for film and television production, distribution, or streaming services. The agency noted that the merger would create a “next‑generation global media and entertainment company” but that it would not create a monopoly or substantially reduce consumer choice.

Industry analysts say the deal will create one of the largest entertainment conglomerates in history, with a combined library that includes blockbuster franchises such as Transformers, Mission: Impossible, and Star Wars, as well as a broad portfolio of cable networks and streaming platforms. The merger could also streamline content production and distribution across multiple platforms.

The DOJ’s approval does not preclude challenges from state attorneys general, who may file lawsuits alleging that the merger could harm competition in specific markets. The deal also depends on a shareholder vote that is expected to take place in the early spring, after both companies’ boards have approved the transaction.

The transaction is projected to close in the third quarter of 2026, subject to customary closing conditions. Paramount Skydance and Warner Bros. Discovery have indicated that they will work with regulators to address any remaining concerns.

The DOJ’s decision was issued by the Antitrust Division, which enforces federal antitrust laws under the Sherman Act and the Clayton Act. The agency’s statement was released in a public announcement that highlighted the lack of evidence that the merger would harm competition or consumers.

The approval is a milestone for Paramount Skydance, which has been positioning itself as a major player in the streaming and content‑creation arena. Paramount+ has already increased its subscription price in January 2026, and the company has secured a seven‑year, $7.7 billion deal to be the exclusive home of UFC events.

Warner Bros. Discovery’s leadership has said that the merger will allow it to better compete with other streaming services and to leverage its extensive content library.

The DOJ’s approval removes the last federal barrier, but the deal remains contingent on state‑level reviews and shareholder approval. Once those conditions are met, the combined company will be one of the most powerful entities in the global entertainment industry.

The next steps for the merger include the pending shareholder vote, potential state‑level challenges, and the final regulatory review. If all conditions are satisfied, the transaction is expected to close in the third quarter of 2026.

The DOJ’s decision is a significant development in the ongoing consolidation of the media and entertainment sector, and it will likely influence future merger activity in the industry.