The US Department of Justice has approved Paramount Skydance’s $111bn (£82.8bn) bid to acquire Warner Bros Discovery, clearing a major regulatory hurdle in a deal that could significantly reshape the global media and entertainment landscape.
The approval allows the merger process to move forward, bringing Paramount closer to acquiring one of Hollywood’s largest studios, which owns major assets including CNN and HBO. However, the transaction is not yet finalized, as it still faces additional scrutiny from state authorities, including California, which is reviewing the deal and could seek to challenge it in court.
In its statement, the Department of Justice said it conducted a “rigorous” review of the proposed acquisition and concluded that it was “not likely to result in harm to competition or American consumers.” Instead, regulators said the merger could “increase competition across the media and entertainment ecosystem,” potentially delivering benefits for audiences and workers.
The decision follows months of debate over the scale and impact of consolidation in the entertainment sector. Critics have warned that the merger would concentrate too much power in a single company, reducing competition at a time when Hollywood is already facing layoffs, production cuts, and shifting business models driven by streaming.
California Attorney General Rob Bonta has previously raised concerns that the deal could further limit competition in the industry. His office has said the review remains ongoing, with a decision on possible legal action still pending.
Opposition has also come from within the entertainment industry. In April, more than 1,400 actors, directors, and filmmakers signed an open letter opposing the acquisition, arguing that it could reduce opportunities for creators and lead to fewer jobs across the production chain.
“The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences,” the letter stated.
The merger would significantly expand Paramount Skydance’s footprint in global media. Following its 2025 merger, the company already owns assets including Paramount Pictures, CBS, Showtime, and Nickelodeon. The addition of Warner Bros Discovery would bring CNN, HBO, TBS, TNT, TCM, DC Studios, and New Line Cinema under its control, creating one of the largest entertainment conglomerates in the world.
Paramount executives have argued that the combination would generate substantial cost savings and strengthen their ability to compete in an increasingly consolidated streaming market.
Warner Bros Discovery had previously explored multiple sale options, including discussions with Netflix over a partial acquisition valued at around $82bn including debt. Paramount entered the bidding process with a competing offer that was initially rejected, but later increased its proposal, which ultimately proved more attractive than Netflix’s revised terms.
Despite regulatory approval at the federal level, the deal continues to face political and industry resistance. Concerns over market concentration, employment impacts, and editorial independence remain central to the debate as the merger moves toward its next phase.
