Donald Trump’s Department of Justice has approved the $111bn merger of Paramount Skydance and Warner Bros Discovery – a deal that will bring together CBS News and CNN under one roof and now faces a new investigation in the UK.
The justice department’s anti-trust division cleared the transaction after months of review, despite widespread concerns in the entertainment and media industries that it will reduce competition by shrinking the number of major film studios and merging two of America’s biggest news networks. “The Division has completed its analysis … and determined based on the evidence received in its investigation that the transaction is not likely to result in harm to competition or American consumers,” the agency said on Friday evening, citing streaming, linear television and film production.
“US approves $111bn Paramount-Warner Bros merger as UK launches competition probe with 7 August deadline.”
But the US green light is not the end of the road. Earlier this week, the UK Competition and Markets Authority opened its own probe into the merger, with a 7 August deadline to decide whether a more in-depth review is needed. European regulators are also examining the deal – specifically the funding behind it, including $24bn pledged by three Gulf sovereign-wealth funds. Both the EU and UK reviews have July deadlines. On Tuesday, Australian regulators approved the merger after concluding it “is [not] likely” to harm competition.
Paramount welcomed the US decision. “We are grateful for the Department of Justice’s thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date,” the company said. “This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms … We remain focused on completing the transaction as soon as possible.”
The merged group – controlled by the Ellison family, which owns Paramount Skydance – would combine Paramount’s CBS News with Warner Bros Discovery’s CNN, as well as HBO and a vast library of film and TV content. David Zaslav, Warner Bros Discovery’s CEO, and David Ellison, Paramount’s CEO, have championed the tie-up as necessary to compete with streaming giants. But critics point to the dwindling number of independent studios and the potential for job losses.
Even with US approval, the deal could face a lawsuit from state attorneys general, and the outcome of the UK investigation remains uncertain. The CMA has until 7 August to decide whether the merger “may be expected to result in a substantial lessening of competition” in Britain.