US Justice Dept Approves Paramount’s $111bn Takeover of Warner Bros Discovery
The U.S. Department of Justice has approved Paramount Skydance’s $111 billion bid to acquire Warner Bros Discovery, marking a major step toward consolidating some of the biggest names in media.
The decision clears a move that would give Paramount control of iconic studios such as DC Studios and New Line Cinema, alongside its existing assets of Paramount Pictures, CBS, Showtime and Nickelodeon. It would also bring CNN, HBO, TBS, TNT and TCM under one corporate umbrella.
The DOJ stated it had conducted a "rigorous" investigation and concluded the deal would likely "increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers."
Despite the federal approval, California Attorney General Rob Bonta remains skeptical. In February, he warned that the merger could further consolidate the industry and limit competition, and that the state would soon decide whether to pursue formal legal action to block the deal.
A spokesperson for Bonta reported that the review was still underway, with no update released. Meanwhile, Hollywood studios sent a collective voice: more than 1,400 actors, directors and filmmakers signed an open letter opposing the merger, citing potential job cuts, higher costs and fewer choices for audiences.
Paramount’s bid followed an earlier proposal that Warner Bros declined. The studio had a prior sale agreement with Netflix to purchase some assets for around $82 billion. Paramount’s final offer surpassed that, prompting Netflix to deem it financially unattractive, but the sale of the remaining studio assets proceeded without sign‑off from Netflix.
While the federal approval moves the deal forward, the pending state review means the transaction is not yet finalized. The outcome of California’s investigation could still stall or even derail the takeover, leaving the entertainment landscape uncertain for the coming weeks.
