Warner Bros $111bn sale to Paramount approved by US justice department
9 reported2 unconfirmed
The US Department of Justice has approved Paramount Skydance’s $111bn (£82.8bn) acquisition of Warner Bros Discovery, according to a BBC News report. The approval allows the takeover bid of the Hollywood studio, which owns CNN and HBO, to continue. The justice department stated it conducted a “rigorous” investigation and found the deal was “not likely to result in harm to competition or American consumers.” Instead, the department said the deal would likely “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.” However, the sale is not final, as states like California are reviewing the deal and could sue to block it. California Attorney General Rob Bonta expressed concern that the takeover would further consolidate and limit competition in the entertainment industry, and a spokesperson said the review “remains under investigation.”
What’s reported
Paramount Skydance’s $111bn (£82.8bn) acquisition of Warner Bros Discovery has been approved by the US Department of Justice.
The justice department said it conducted a “rigorous” investigation and found the deal was “not likely to result in harm to competition or American consumers.”
The department also said the deal would likely “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”
States like California are reviewing the sale and could sue to block it.
California Attorney General Rob Bonta said in late February he was concerned the takeover would further consolidate and limit competition in the entertainment industry.
A spokesperson for Bonta said the review “remains under investigation.”
Skydance merged with Paramount in 2025 and cut about 10% of its workforce in the process.
By taking over Warner Bros, Paramount will add CNN, HBO, TBS, TNT, TCM, DC Studios, and New Line Cinema to its current assets, which include Paramount Pictures, CBS, Showtime, and Nickelodeon.
Warner Bros initially reached a deal with Netflix to buy some of its assets for roughly $82bn (£61bn) including debt, but Paramount made a rival proposal and increased its bid to an amount Netflix said was “no longer financially attractive” to counter.
Open questions
Whether California or other states will sue to block the sale.
The specific outcome of California Attorney General Rob Bonta’s investigation.
Key figures
David Ellison, leader of Paramount, son of Larry Ellison, a major donor to President Donald Trump.
Rob Bonta, California Attorney General.
Sources: BBC News
