The US Department of Justice's Antitrust Division has approved the $111 billion merger between Paramount Skydance and Warner Bros. Discovery without requiring any divestitures or behavioural remedies, Variety has confirmed. The regulator concluded after an eight-month investigation that the deal is unlikely to harm competition or American consumers in streaming, linear TV, or film production.
The merger, led by David Ellison's Paramount Skydance, would combine major assets including CBS, Paramount Pictures, and Paramount+ with Warner Bros. Discovery's HBO, CNN, and Warner Bros. Pictures. Paramount executives have projected over $6 billion in cost savings, signalling potential large-scale layoffs.
The decision has faced significant backlash from Hollywood. Over 5,500 filmmakers and actors, including Florence Pugh, Pedro Pascal, and Robert De Niro, have signed an open letter opposing the deal, arguing it would eliminate jobs and reduce competition. The Teamsters union also urged the DOJ to block the merger unless enforceable safeguards against job cuts were implemented.
The DOJ's Antitrust Division stated that its review included over 2 million documents and testimony from senior executives, concluding that the film and television industry remains highly dynamic and the transaction is not anticompetitive. Paramount Skydance welcomed the approval, calling the deal pro-competitive and essential to compete with dominant tech platforms.
However, the merger still faces potential legal challenges. State attorneys general, including California's Rob Bonta, have indicated they may pursue litigation to block the deal on antitrust grounds. Senator Elizabeth Warren criticised the approval, alleging corruption and influence-peddling, and urged state officials to intervene.
