Justice Department approves Paramount takeover of Warner Bros Discovery

The U.S. Justice Department has approved Paramount Skydance’s roughly $110 billion takeover of Warner Bros. Discovery, clearing a major federal hurdle for a merger that would combine two of Hollywood’s oldest studios and redraw the media landscape.

Two people familiar with the decision told NBC News that the department had signed off on the deal, with a formal announcement expected soon. The BBC, citing its news partner CBS, reported the acquisition was valued at $111 billion and had been approved by the Justice Department’s antitrust division. Politico first reported the approval, according to NBC News.

The deal would bring together Paramount’s 114-year-old film studio, Paramount+ streaming service and CBS broadcast network with Warner’s 116-year-old studio, HBO Max and a cable portfolio that includes CNN. The acquisition would allow Paramount Skydance to continue its takeover of Warner Bros. Discovery, though it is not final.

Paramount Skydance CEO David Ellison has said he intends to “honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company.” Ellison, 43, is the son of Oracle co-founder Larry Ellison, a technology magnate and ally of President Donald Trump. The BBC described Larry Ellison as a donor to Trump.

The proposed merger has drawn opposition from entertainment workers, elected officials and state regulators who warn it could further concentrate power in an already consolidated industry. In April, more than 1,000 entertainment professionals signed an open letter saying the deal 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,” NBC News reported. The BBC reported that more than 1,400 Hollywood actors, directors and filmmakers signed an April letter opposing the merger.

“The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world,” the signatories said, according to the BBC.

The Justice Department’s approval does not end the scrutiny. California Attorney General Rob Bonta has said his office is investigating the tie-up, and a person familiar with the matter told NBC News that New York Attorney General Letitia James’ office is part of that probe. Bonta’s office said its investigation was ongoing and otherwise declined to comment on the federal decision, NBC News reported. The BBC reported that Bonta said in late February he was concerned a Warner Bros. takeover would further consolidate the entertainment industry and limit competition, and that he said earlier this month he would soon decide whether to take formal legal action to block the merger.

Sen. Elizabeth Warren, D-Mass., who has publicly opposed the deal, called the Justice Department’s approval “terrible news for every American.” In a post on X, she wrote: “This fight isn’t over. State AGs must block this merger.”

European Union officials are also reviewing the transaction because of its financial backing from three Middle Eastern sovereign wealth funds. In an April filing with the U.S. Securities and Exchange Commission, Paramount said its acquisition of Warner is backed in part by Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’IMAD Holding and the Qatar Investment Authority.

Paramount has also faced scrutiny in recent weeks over major changes at CBS News. NBC News reported that Bari Weiss, appointed by Ellison as editor-in-chief, fired multiple “60 Minutes” correspondents at the end of the most recent season.