US Justice Department Approves $111 Billion Paramount-Warner Bros Merger
7 verified5 unconfirmed
The U.S. Justice Department has approved the proposed $111 billion merger of Paramount Skydance and Warner Bros Discovery after an eight-month antitrust review. The department determined that the transaction is not likely to harm competition or American consumers in streaming, linear television, or film studio operations, citing increased competition from tech platforms like Netflix, Apple, and Amazon. The deal would unite Paramount's CBS and Paramount+ with Warner Bros' CNN, HBO, and HBO Max under the control of the Ellison family, led by Oracle co-founder Larry Ellison and his son David Ellison. The merger has drawn opposition from media watchdogs, some Hollywood figures, and Democratic lawmakers who argue it reduces competition and concentrates media power. Employees at CBS News and CNN have expressed concerns about potential job cuts and the editorial direction of CNN under the new ownership. While the U.S. clearance is a major step, the merger still faces reviews from British and European regulators, and state attorneys general in California and other states are reportedly preparing a potential lawsuit to block the deal.
What’s verified
The Justice Department approved the merger after an eight-month investigation, finding no threat to competition or consumers.
The deal is valued at approximately $111 billion.
The merging companies include Paramount, which owns CBS and Paramount+, and Warner Bros Discovery, which owns CNN, HBO, and HBO Max.
The Ellison family (Larry Ellison and his son David Ellison) controls Paramount Skydance and will lead the combined company.
The merger has faced criticism from some media watchdog groups, Hollywood professionals, and politicians over concerns about media consolidation and potential editorial bias.
State attorneys general, including California's Rob Bonta, are considering a lawsuit to try to halt the merger.
The UK's Competition and Markets Authority opened an investigation into the deal with an August deadline, and European regulators are also reviewing the merger with a July deadline.
Not yet confirmed
Australia has already approved the deal, according to a single report.
Three Gulf sovereign-wealth funds have committed a combined $24 billion to the deal, according to one source.
Reports suggest David Ellison could choose to put CBS News editor-in-chief Bari Weiss in charge of CNN, though this is speculation from one source.
The merger is expected to produce $6 billion in synergies, according to a single source.
Details of possible layoffs and specific editorial changes are not yet confirmed.
Key figures
Larry Ellison, co-founder of Oracle and financial backer of President Trump
David Ellison, founder of Skydance Media and CEO of Paramount Skydance
Bari Weiss, editor-in-chief of CBS News
Rob Bonta, California Attorney General
Elizabeth Warren, U.S. Senator from Massachusetts
Craig Aaron, co-chief executive of Free Press
Sources: The Guardian, NPR, dw.com
