U.S. Department of Justice building interior, Washington D.C., winter afternoon.
The U.S. Justice Department (DOJ) has concluded its eight-month antitrust investigation into the proposed acquisition of Warner Bros. Discovery by Paramount and Skydance. The department announced Friday that the deal is not likely to harm competition or American consumers, and could even strengthen competition across the media and entertainment industry.
The Antitrust Division reviewed over two million documents and found that the transaction could benefit consumers and workers by increasing competition in streaming video, traditional television, and theatrical film distribution. The DOJ noted that the combined company would still face significant competition from major players like Netflix, Amazon, and Disney, and saw no evidence that the deal would reduce consumer choice.
This decision, however, drew criticism from Senator Elizabeth Warren, who urged state attorneys general to continue opposing the transaction, citing concerns about billionaire control over media content and costs. State attorneys general retain independent authority to challenge the merger, regardless of the DOJ’s findings.
The merger still requires several steps to be completed. Paramount has extended its debt exchange and tender offers related to Warner Bros. Discovery, anticipating alignment with the anticipated closing timetable, though the company cautioned that the acquisition remains subject to closing conditions and other risks.
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