The Justice Department has cleared Paramount Skydance's acquisition of Warner Bros. Discovery, removing a major regulatory hurdle from what will be one of the largest media mergers in recent history. The deal, valued at $110 billion, unites two of Hollywood's oldest studios and reshapes the landscape of American entertainment, according to sources familiar with the decision.
Paramount brings to the table a 114-year-old film studio, the Paramount+ streaming service, and the CBS broadcast network. Warner contributes its own 116-year-old studio, HBO Max, and a portfolio of cable channels including CNN. The combined entity will control substantial portions of both theatrical film production and streaming distribution, as well as significant cable news and entertainment infrastructure.
CEO David Ellison, who is 43 and son of Oracle co-founder Larry Ellison, has signaled his intention to blend the two companies while maintaining their historical significance. Ellison has previously stated he would "honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company."
The approval marks a significant shift in the regulatory environment after months of scrutiny. Over 1,000 entertainment professionals released an open letter opposing the merger in April, arguing that combining two major media conglomerates would "further consolidate an already concentrated media landscape, reducing competition at a moment when our industries and the audiences we serve can least afford it."
The fight over the deal is far from finished at the state level. California Attorney General Rob Bonta has launched an investigation into the tie-up, and New York Attorney General Letitia James' office is part of that effort. Both states have signaled they may pursue legal challenges independent of federal approval. Senator Elizabeth Warren, a frequent critic of media consolidation, called the Justice Department's decision "terrible news for every American" and urged state attorneys general to block the merger.
Overseas regulators are also examining the deal. European Union officials are reviewing the transaction, in part because of financial backing from three Middle Eastern sovereign wealth funds: Saudi Arabia's Public Investment Fund, Abu Dhabi's L'IMAD Holding, and the Qatar Investment Authority. These funding sources are listed in Securities and Exchange Commission filings related to the acquisition.
The approval comes as Paramount faces internal turbulence. Ellison's influence over CBS News operations has drawn attention, particularly following major personnel changes at "60 Minutes" and the appointment of editor-in-chief Bari Weiss, whose tenure has been marked by significant staff departures.
A formal announcement of the Justice Department's approval is expected soon, though Paramount Skydance declined to comment immediately on the news.
Author Sarah Mitchell: "The DOJ's rubber stamp is a win for Ellison, but state AGs and overseas regulators could still throw a wrench into one of the biggest consolidation plays Hollywood has seen in years."
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