The U.S. Department of Justice under President Trump has approved a $111 billion merger between Paramount Skydance—owned by the Ellison family—and Warner Bros. Discovery, which operates networks such as CNN and HBO.
The antitrust division of the Department of Justice approved the merger after an extensive review, despite widespread concerns from many in the entertainment and media sectors that it could reduce competition by consolidating film studios and combining two major news outlets, CBS News and CNN.
The agency announced that its eight‑month investigation concluded the merger is unlikely to harm competition or American consumers, noting no significant effects on streaming video on demand, linear television, or film production, distribution, and theatrical release.
Although the U.S. approval represents a major victory for the deal, obstacles persist. The United Kingdom’s Competition and Markets Authority has launched its own investigation to assess whether the merger would substantially lessen competition, with a deadline of 7 August to decide if a deeper review is required. European regulators are also examining the merger’s financing, which includes a combined $24 billion commitment from three Gulf sovereign‑wealth funds. Both the UK and European reviews target a July deadline.
On Tuesday, Australian regulators approved the merger, concluding that it is unlikely to substantially diminish competition in the wholesale supply of films for theatrical exhibition in Australia, according to a Securities and Exchange Commission filing that noted approvals from several other jurisdictions.
Journalists at CBS News and CNN have voiced worries that the merger could lead to substantial layoffs, given the companies’ pledge of $6 billion in synergies. Long‑standing concerns among CNN staff members include the prospect that David Ellison and his father, Larry—a longtime associate of President Trump—might steer the network toward a more president‑friendly editorial stance. While David Ellison pledged in March to safeguard CNN’s editorial independence, there is speculation that he could appoint CBS News’s controversial editor‑in-chief, Bari Weiss, to lead the cable channel.
A coalition of U.S. state attorneys general may file a lawsuit to block the merger in the coming weeks, potentially led by California Attorney General Rob Bonta.
Politico was the first to report that the Trump administration’s Justice Department had decided to approve the merger.
The Justice Department said that its eight‑month investigation, conducted by career staff, obtained more than two million documents from over 80 custodians, produced substantial data sets, and gathered extensive third‑party documentation and advocacy from across the media and entertainment ecosystem.
Opponents of the deal criticized the Trump administration’s decision to approve the merger, which had long been anticipated.
Craig Aaron, co‑CEO of Free Press, stated that the Justice Department’s decision appeared pre‑determined, saying Paramount Skydance had courted and flattered the administration and promised sweeping changes to news coverage to secure approval, despite evidence that concentrating such media power—spanning studios, cable channels, and newsrooms—would erode competition, eliminate jobs, bias news, and threaten democracy.
Aaron urged state attorneys general to file lawsuits to halt the merger, asserting that they possess the necessary evidence and that the public now needs them to act.
Senator Elizabeth Warren, a vocal critic, posted on social media that the approval is “terrible news for every American who does not want Trump‑aligned billionaires to control what they watch and how much they pay,” adding that the merger “reeks of corruption and influence‑peddling.”