NEW YORK — The U.S. Department of Justice’s Antitrust Division has approved Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, clearing a major regulatory hurdle for the roughly $110 billion media merger, the department said.
The division closed its investigation on June 12 and determined that the transaction is not likely to result in harm to competition or American consumers in key areas including streaming video on demand, linear television, and the development, production or distribution of films for theatrical release, according to a DOJ statement.
Paramount Skydance announced the definitive agreement to acquire Warner Bros. Discovery in late February 2026. The deal, valued at approximately $110 billion to $111 billion, would combine two major Hollywood studios and create a larger entertainment company encompassing assets such as Paramount’s CBS, Paramount+, and Warner Bros. Discovery’s HBO, CNN, and Warner Bros. studio.
The approval came without requiring any divestitures or behavioral remedies. Paramount Skydance said it was grateful for the thorough review. “We are grateful for the Department of Justice’s thorough review of this transaction,” the company stated.
The merger still requires other approvals and faces potential challenges. Several state attorneys general, including California’s, have expressed antitrust concerns and may pursue legal action to block the deal, sources familiar with the matter have said.
The transaction has drawn scrutiny amid broader industry consolidation. Critics, including some lawmakers, have raised questions about potential impacts on competition and content diversity, though the DOJ found the deal unlikely to harm consumers.
Warner Bros. Discovery shareholders are expected to vote on the proposal, with the deal targeted to close later in 2026 subject to remaining conditions.
As of Wednesday, no further federal regulatory decisions had been announced. Both companies have said the combination would create a stronger competitor in the global media landscape, while state-level reviews continue.
The DOJ’s decision marks one of the most significant media merger approvals in recent years under the current administration. Details on the timeline for closing remain subject to ongoing processes.
