Justice Department approves Paramount, Warner Bros. Discovery merger
The U.S. Department of Justice has approved Paramount’s proposed acquisition of Warner Bros. Discovery, clearing a major hurdle for the roughly $110 billion merger.
The deal, which had faced antitrust scrutiny, is expected to close in September. While it could still face legal challenges from state attorneys general, federal regulators have chosen not to oppose it. WBD shareholders had previously approved the transaction.
DOJ officials concluded the merger would not significantly reduce competition.
The deal could have broad implications across the entertainment, news, and sports industries.
The estimated $110 billion transaction would combine Paramount Pictures and Warner Bros., studios whose histories span more than a century. The combined company would also include the Paramount+ and HBO Max streaming services, the CBS broadcast network and cable channels including CNN.
The merger could still face legal challenges. California Attorney General Rob Bonta has said his office is investigating the proposed deal, while reports indicate New York Attorney General Letitia James’ office is also participating in the review.
European Union regulators are separately reviewing the transaction because of financing from Middle Eastern sovereign wealth funds.
According to securities filings, Paramount said the acquisition is backed in part by Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’IMAD Holding and the Qatar Investment Authority.
