The U.S. Department of Justice has approved Paramount’s 111 billion dollars merger with Warner Bros. Discovery, clearing the way for the creation of what would become the world's largest media and entertainment group. The approval followed an eight-month investigation during which authorities reviewed more than two million documents submitted by more than 80 parties.
The Justice Department said it had completed its review of the transaction and determined that it would not harm “competition or American consumers.” Paramount thanked regulators for their thorough examination, noting that other regulatory bodies that reviewed the deal had also granted their approval.
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The U.S. Department of Justice has approved Paramount’s 111 billion dollars merger with Warner Bros
(Photo: Valerie Macon/AFP, Mario Tama/Getty Images)
The merger agreement, reached in February after a prolonged bidding battle with Netflix, would bring some of the industry's most valuable assets under one roof, including HBO, CNN, CBS, Paramount Pictures and Warner Bros. Studios. The approval marks a major milestone for Oracle founder Larry Ellison and his son David Ellison, who is set to lead the combined company, as they move toward building one of the world's largest media groups.
U.S. President Donald Trump praised the merger, arguing that David Ellison’s leadership would help address what he has described as political bias at CNN. Ellison, whose father Larry is among Trump’s most prominent supporters, has not publicly committed to changing the network’s editorial direction. However, his decision to appoint Bari Weiss to lead CBS News has been widely viewed as an effort to ease concerns within the White House.
The combined company believes its scale will strengthen its ability to compete with technology giants and streaming rivals. However, federal approval does not eliminate all regulatory risks. Several state attorneys general could still challenge the transaction, although people close to the companies expressed skepticism about the likelihood of such efforts succeeding. California Attorney General Rob Bonta said his office’s investigation remains ongoing.
Democratic Senator Elizabeth Warren sharply criticized the decision and urged state attorneys general to block the deal. “This is terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay,” she said.