The Department of Justice greenlit a merger between Paramount Skydance and Warner Bros. Discovery, a move set to have major implications for the entertainment industry.
In a lengthy statement, the DOJ said its investigation concluded that the “transaction is not likely to result in harm to competition or American consumers,” including in regard to streaming, linear television, and studio development, production, or distribution of films for theatrical release. The investigation took eight months and examined over 2 million documents from 80 custodians, in addition to mountains of other data.
“The extensive investigatory record reviewed by the Division suggests that the impact of the transaction will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers,” the statement said.
Paramount and WBD announced their merger deal in February, beating out Netflix after an extensive bidding war. The deal gives Paramount ownership of several cultural and entertainment titans: Game of Thrones, Mission Impossible, Harry Potter, Top Gun, the DC Universe, and SpongeBob SquarePants.
The Netflix-Paramount bidding war was constantly overshadowed by wider national politics. Paramount has been viewed as more friendly to the Trump administration and Republicans, with Paramount Skydance CEO David Ellison shifting CBS News away from the left. Larry Ellison, CEO of Oracle and father of David, is a prominent GOP fundraiser. Meanwhile, Netflix has been viewed as more friendly to the Democratic Party, particularly given its yearslong collaborations with the Obama family.
Democrats have likewise involved themselves in the dispute, publicly pushing against the merger. Last month, Reps. Sam Liccardo (D-CA) and Deborah Ross (D-NC) sent a letter alongside European lawmakers Nathalie Loiseau, Brando Benifei, and Andreas Schwab to David Ellison, scrutinizing the merger.
EUROPEAN LEGISLATORS JOIN MEMBERS OF CONGRESS IN SCRUTINIZING PARAMOUNT-WBD MERGER
Sen. Elizabeth Warren (D-MA) openly denounced the DOJ’s clearing of the merger, pledging that the fight wasn’t over.
“This is terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay,” she posted on X. “The Paramount-Warner Bros. deal has reeked of corruption and influence-peddling. This fight isn’t over. State AGs must block this merger.”