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The Justice Department has approved Paramount’s massive $111 billion deal to buy Warner Bros., a key approval that removes a major regulatory hurdle to completing a merger that will reshape Hollywood.
The Justice Department’s antitrust division said in an announcement Friday that the acquisition “will increase competition across the media and entertainment ecosystem.” The agency found that the markets for streaming, linear television and developing, producing or distributing films for theatrical release would not be harmed.
The decision paves the way for Paramount to become the nation’s largest theatrical distributor and own the top five streaming companies by subscribers unless the merger is blocked by another entity.
“We are grateful for the Department of Justice’s comprehensive review of this transaction, as well as the work of other agencies that have completed their reviews and provided clearance to date,” a Paramount spokesperson said in a statement. “This transaction 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.”
The green light does not appear to require any filters, behavioral remedies or concessions.
The Ministry of Justice is one of several groups that have posed an obstacle to completing the merger. They include state attorneys general, the FCC, the European Union and consumers, who have already sued to stop the takeover.
Paramount has framed the deal as one that would boost competition in Hollywood, arguing that it is necessary to compete against tech giants like Netflix, Amazon and Apple.
The Department of Justice eventually agreed with Paramount’s position on the merger. “In technology-driven industries, the disruptors of the recent past may become the entrenched monopolies of today,” the report said. “With this historical experience and current enforcement sensitivity to competition in dynamic markets, the Department conducted a comprehensive investigation into the proposed transaction to assess whether the proposed transaction posed any harm to competition.”
While the Justice Department is considering approval, a coalition of states led by California is preparing a lawsuit to block the deal, which is expected to be filed within a month. A source familiar with the situation said New York, Colorado, Oregon, Nevada, Washington, Connecticut and Tennessee are among several states in talks to join. Hollywood Reporter.
In a post on X, Sen. Elizabeth Warren (D-Mass.) urged state attorneys general to pursue the merger challenge.
“This is terrible news for every American who doesn’t want billionaires allied with Trump to control what they watch and how much they pay,” she said. “The Paramount-Warner Brothers deal reeks of corruption and influence peddling. This fight is far from over.”
So far, regulators in Saudi Arabia, Ukraine, Serbia and North Macedonia have found that the deal does not violate antitrust laws, Paramount Chief Legal Officer Makan Delrahim announced. The foreign direct investment authorities of Germany, Italy, France, Romania, Slovenia, Belgium, the Czech Republic and New Zealand also approved the merger.
“We remain focused on closing the transaction as soon as possible and delivering its benefits to consumers, creators and the entertainment industry as a whole,” Paramount said in a statement.
