US Justice Department Clears Paramount Skydances $110 Billion Acquisition of Warner Bros. Discovery

On Friday, June 12, the U.S. Department of Justice (DOJ) announced that it had closed its antitrust investigation into Paramount Skydance’s proposed purchase of Warner Bros. Discovery (WBD). The agency determined that the merger is unlikely to harm competition or consumers.

Paramount Skydance, the product of a 2025 merger between Paramount Global and Skydance Media, agreed to buy WBD for roughly $110 billion in late February. The deal follows a failed bid from Netflix and a prior sale of Paramount’s controlling shareholder, National Amusements, to Skydance. In a statement released the same day as an Associated Press report, the DOJ said the merger would “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”

The DOJ’s review covered several market segments. For video‑streaming services, the agency concluded that combining Paramount+ and HBO Max would create a “robust competitive alternative” to larger platforms such as Disney+ and Amazon Prime Video. It also noted that social‑media portals that offer streaming, including YouTube and TikTok, do not qualify as direct substitutes under established antitrust precedent.

Linear television was examined next. The DOJ said the merger would not reduce competition for live programming, citing the continued presence of multiple broadcasters and cable networks. In the film studio arena, the agency found that the combined entity would not lessen competition in development, production or theatrical distribution, citing “extensive competition within the industry” that has produced a wide range of films and is expected to persist.

The decision follows months of subpoenas and document requests that began in March. The DOJ’s investigation is part of a broader regulatory review that includes state and foreign authorities. California Attorney General Rob Bonta has announced an ongoing investigation, while the European Commission set a provisional deadline of July 7 to decide on the merger under the EU’s Foreign Subsidies Regulation. The UK Competition and Markets Authority plans an initial decision by early August.

Industry reaction has been mixed. Paramount Skydance chief executive David Ellison said the company would keep Paramount and Warner Bros. as separate studio operations and plans to release 30 films a year in theaters. He also acknowledged that the merger would require cost‑cutting due to duplication.

Many Hollywood workers, including actors, directors and writers, have expressed opposition to the deal, citing concerns about job losses and reduced creative choices. Several lawmakers have also voiced alarm.

If the merger does not close by September 30, Paramount has agreed to a “ticking fee” of 25 cents per share for each quarter past that date, and a regulatory termination fee of $7 billion.

The DOJ’s approval does not end the regulatory process. The merger remains subject to review by California, the European Union, the United Kingdom and the Federal Communications Commission, which is examining foreign investment from Gulf sovereign wealth funds.

At present, the DOJ has cleared the deal for the United States, but the final outcome will depend on the decisions of the other regulators.