DOJ approves Paramount’s $111 billion Warner Bros. deal with no conditions

The Justice Department’s Antitrust Division has signed off on Paramount Skydance’s $111 billion acquisition of Warner Bros. Discovery, clearing a major regulatory hurdle with no required divestitures, behavioral remedies, or concessions, according to two people familiar with the matter. DOJ officials determined the transaction did not pose a threat to competition and declined to challenge it, the people said, speaking anonymously to discuss sensitive matters.

The deal would combine two historic rival studios and merge HBO Max with Paramount+ into a new streaming service with roughly 200 million subscribers. The DOJ and Paramount did not immediately respond to requests for comment.

The federal approval does not end the merger’s legal scrutiny. California Attorney General Rob Bonta is still reviewing the transaction and could sue to block it, with his office telling Politico this week that the deal “remains an active investigation.” Representatives for roughly half a dozen state attorneys general, including Bonta and New York Attorney General Letitia James, listened in on a recent meeting between Paramount CEO David Ellison and DOJ antitrust officials.

Paramount has argued the merger would strengthen competition against streaming leaders and technology rivals. In March, Paramount COO Andy Gordon told analysts the company expected more than $6 billion in synergies within three years of closing, with most coming from non-labor sources, though Hollywood workers have warned the deal could trigger another wave of industry layoffs.