Donald Trump’s Department of Justice has approved the $111bn merger of Paramount Skydance and Warner Bros Discovery, the parent company of CNN and HBO, after a months-long review — a decision that clears the biggest regulatory hurdle in the United States but leaves the deal facing fresh investigations in the UK and Europe.
The justice department’s anti-trust division said on Friday evening that it had “completed its analysis of the proposed merger” 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” in three areas: streaming video on demand, linear television, and studio development and distribution of films for theatrical release. The approval comes despite widespread concern in the entertainment industry that the combination will reduce the number of major film studios and could merge two news networks, Paramount’s CBS News and CNN.
“US approves $111bn Paramount-Warner Bros merger; UK CMA opens investigation with 7 August deadline.”
But the fight for the deal is far from over. Earlier this week, the UK Competition and Markets Authority opened an investigation to determine whether the merger will result in a “substantial lessening of competition” in Britain. The CMA has set a 7 August deadline to decide whether a more in-depth review is needed. European regulators are also examining the deal, with a particular focus on the funding: three sovereign-wealth funds in the Gulf have committed a combined $24bn. Both European reviews have July deadlines.
Paramount responded to the US approval with a statement Friday evening defending the merger. “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 in an industry increasingly defined by intense competition for audiences, talent, technology, and investment. We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators, and the entertainment industry as a whole.”
On Tuesday, regulators in Australia also gave the deal the green light, determining it “is not likely to result in harm to competition”. The merger — between Paramount Skydance, controlled by the Ellison family, and Warner Bros Discovery, led by CEO David Zaslav — still faces potential legal action from US state attorneys general, though no lawsuit has yet been filed. The outcome of the UK and European reviews will be critical to whether the deal can close as planned.