The U.S. Justice Department on Friday cleared Paramount Skydance’s $111 billion takeover of Warner Bros. Discovery, handing a serious win to a media empire financed by one in every of President Donald Trump’s closest billionaire allies.
The Antitrust Division accredited the blockbuster deal with out demanding a single change, capping an eight-month evaluation and clearing the way in which for one of many largest media mergers in years.
It stated the tie-up was “not likely to result in harm to competition or American consumers” — and will even improve competitors.
The approval is a coup for Paramount chief government David Ellison, whose father, Oracle co-founder Larry Ellison, largely financed the takeover.
The elder Ellison, one of many world’s richest males, is a detailed ally of Trump.
A gaggle of Democratic senators led by Elizabeth Warren had warned {that a} Warner Bros. deal risked being “tainted by political favoritism and corruption,” urging the Justice Department to evaluation it on the legislation and info.
Larry Ellison’s monetary assure was what lastly gained over the Warner Bros. board, sealing Paramount’s victory in a bruising bidding conflict with Netflix.
The mixed firm will management a sprawling roster of belongings, together with CNN, Warner Bros. Pictures and the HBO Max streaming service.
But the federal sign-off doesn’t finish the deal’s authorized peril.
A coalition of about 10 states led by California is making ready an antitrust lawsuit that would land this month, Bloomberg has reported.
California Attorney General Rob Bonta’s workplace stated this week the acquisition “remains an active investigation.” The European Commission is reviewing the merger as nicely.
Hollywood is uneasy concerning the deal.
Hundreds of actors and administrators have signed a letter opposing the merger, warning it should choke manufacturing in an business already battered by years of consolidation and cost-cutting.
The Justice Department pushed again on these fears immediately, arguing the proof didn’t present the merger would shrink output.
The saga started final 12 months, when streaming large Netflix and Paramount went to conflict over Warner Bros. and its prized again catalog.
A cautious Tinseltown reluctantly lined up behind Netflix because the lesser of two evils, solely to look at Paramount maintain elevating its bid till the streamer walked away.
© 2026 AFP