The US Justice Department has approved the proposed merger between Paramount and Warner Bros., clearing a major federal hurdle despite strong opposition from across the entertainment industry.
Discussions over the future of Warner Bros. Studios intensified in recent months, with Netflix initially viewed as a leading contender. After Netflix withdrew from the bidding process in February, Paramount Skydance emerged as the favored buyer for the major studio.
In April, Warner Bros. Discovery shareholders approved the $111 billion takeover by Paramount Skydance, the company backed by tech billionaire Larry Ellison and his son David. The deal would place Warner Bros.’s film and television assets under Paramount Skydance’s control, including Harry Potter, Game of Thrones, HBO, CNN, the DC Universe and The Lord of the Rings.
The Justice Department’s Antitrust Division has now formally approved the transaction, a move that had been widely anticipated given Donald Trump’s close relationship with Larry Ellison.
In a statement released Friday (June 12), the division said it had completed its review and concluded, based on the evidence gathered, that the transaction was unlikely to harm competition or American consumers.
The department found that the merger would not significantly weaken competition in streaming, linear television, studio production or theatrical distribution.
Hundreds of prominent entertainment industry figures have challenged that conclusion. Earlier this year, a group of Hollywood figures signed an open letter warning that the deal could threaten jobs, raise costs for consumers and reduce the number of projects entering development.
More than 4,000 people have signed the letter, including over 75 Oscar winners and nominees. Among them are Robert De Niro, Ben Stiller, Mark Ruffalo, Florence Pugh, Pedro Pascal, Edward Norton, Joaquin Phoenix, Kristen Stewart, Bryan Cranston, David Fincher, Denis Villeneuve, Jane Fonda and Lin-Manuel Miranda.
Paramount Skydance welcomed the Justice Department’s decision, saying the review had been thorough and that the deal would create a stronger company better able to compete with dominant technology platforms. The company said it remains focused on completing the transaction and delivering benefits to consumers, creators and the wider entertainment industry.
The deal still faces additional challenges. US state attorneys general have brought antitrust litigation against the merger, while regulators in the UK and Europe have yet to issue their final decisions.
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