The Trump administration's Justice Department has approved the $111 billion merger between Paramount and Warner Bros. Discovery, concluding an eight-month antitrust investigation by the department's career staff.
The department announced Friday that it had "completed its analysis of the proposed merger" and determined the transaction would not likely harm competition or consumers across streaming video on demand, linear television, or theatrical film distribution. The approval represents a significant victory for the deal, which combines two major entertainment conglomerates controlling major film studios, cable networks, and streaming services.
The merger combines Paramount's assets including CBS News and Paramount Pictures with Warner Bros. Discovery's holdings of HBO, CNN, and DC Comics properties. Skydance, controlled by the Ellison family, is providing financing for the acquisition. Three Gulf sovereign-wealth funds have committed a combined $24 billion to support the deal.
The Justice Department stated that over the investigation period, it "received from the Parties over two million documents from over 80 custodians, substantial productions of data, as well as extensive documents, data, and advocacy from third parties across the media and entertainment ecosystem."
Paramount responded to the approval by stating the 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."
However, the merger faces continued scrutiny domestically and internationally. The UK's Competition and Markets Authority has opened its own investigation and set an August 7 deadline to determine whether a more in-depth review is necessary. Australian regulators have already approved the deal. More significantly, California Attorney General Rob Bonta indicated Friday that his office's investigation remains ongoing, leaving open the possibility of state attorneys general filing a lawsuit to block the transaction.
Opponents of the merger have criticized the approval. Craig Aaron, co-chief executive of Free Press, stated the "fix was in at the Trump Justice Department from the start," adding that the deal "will undermine competition, destroy jobs, slant the news and endanger our democracy." Senator Elizabeth Warren called the approval "terrible news for every American who doesn't want Trump-aligned billionaires to control what they watch and how much they pay."
The merger also faces internal concerns from journalists. Staff at both CBS News and CNN have expressed worry about potential network consolidation, which could result in significant job cuts. The companies have projected $6 billion in synergies from combining operations. Additionally, some CNN staff have raised concerns about the Ellison family's influence on editorial direction, despite pledges that CNN's editorial independence would be protected.