DOJ clears Paramount-Warner Bros. Discovery's USD 111bn merger

The US DOJ has reportedly greenlit the USD 111 billion merger between Paramount and Warner Bros. Discovery without conditions. The deal, however, faces strong opposition from Hollywood professionals and further scrutiny from state AGs and EU regulators.

The US Department of Justice (DOJ) has reportedly approved Paramount's proposed USD 111 billion merger with Warner Bros. Discovery (WBD), removing a significant regulatory hurdle for the blockbuster deal. According to a report by Variety, the DOJ's Antitrust Division has cleared the transaction without requiring "any divestitures, behavioral remedies or concessions."

The approval marks a key step forward for David Ellison's Paramount Skydance as it moves toward completing the merger with Warner Bros. Discovery. After conducting an extensive review, "DOJ officials determined the transaction did not pose a threat to competition and declined to challenge it," Variety reported. The Antitrust Division's approval is expected to be officially announced on Friday.

Media Giants to Unite

The proposed merger would unite some of the biggest brands in entertainment and media. Paramount's portfolio includes CBS, CBS News, Paramount Pictures and Paramount+, while Warner Bros. Discovery owns HBO and HBO Max, Warner Bros. Pictures, CNN, TNT, TBS and HGTV, among other assets.

Industry Opposition and Concerns

The deal has faced strong opposition across the entertainment industry. Paramount executives have previously stated that they expect to generate more than USD 6 billion in cost savings through the merger, raising concerns about potential workforce reductions, as per Variety.

More than 5,500 filmmakers, actors and other Hollywood professionals have signed an open letter opposing the transaction. Critics argue that the merger could eliminate jobs, increase prices and reduce competition in the media sector. Organisers of the BlockTheMerger.com campaign include the Writers Guild of America (WGA), as per Variety.

The Teamsters union had also urged the DOJ to block the merger unless Paramount agreed to "substantial and enforceable safeguards" against job cuts and committed to supporting increased production within the United States, as per Variety.

Further Regulatory Hurdles

Despite the DOJ's reported approval, the merger still faces additional regulatory and legal challenges. Several state attorneys general, including California Attorney General Rob Bonta, have indicated they may pursue litigation aimed at blocking the deal on antitrust grounds.

Reacting to the DOJ's decision, Senator Elizabeth Warren issued a strongly worded statement, saying, "This is terrible news for every American who doesn't want Trump-aligned billionaires to control what they watch and how much they pay. The Paramount-Warner Bros. deal has reeked of corruption and influence-peddling. This fight isn't over. State AGs must block this merger," as quoted by Variety.

International Scrutiny

The proposed transaction is also under review outside the United States. In Europe, the European Commission is examining the deal under the European Union's Foreign Subsidies Regulation, focusing on the approximately USD 24 billion in financing provided by the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. The EU has set a provisional July 14 deadline for its review under the Foreign Subsidies Regulation, alongside a separate July 7 deadline under standard merger assessment rules.

Meanwhile, the United Kingdom's Competition and Markets Authority (CMA) announced on June 9 that it had opened an investigation into the proposed Paramount-Warner Bros. Discovery merger. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)