David Ellison, CEO of Paramount Skydance, speaks on stage during Paramount Pictures’ CinemaCon presentation at the Colosseum at Caesars Palace in Las Vegas, April 16, 2026.
Valérie Mâcon | AFP | Getty Images
The US Department of Justice approved Paramount Skydance project to acquire Discovery of Warner Bros.clearing the merger of federal antitrust concerns.
“The Division has completed its analysis of the proposed merger of Paramount and Warner Bros. and has determined, based on the evidence received during its investigation, that the transaction is not likely to harm competition or U.S. consumers,” the department said in its decision.
A Paramount spokesperson said in a statement that the company was “grateful for the Justice Department’s thorough review of this transaction, as well as the work of other agencies that have completed their reviews and granted clearance to date.”
“This deal is pro-competition because it results in a stronger company better positioned to compete with dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology and investment,” the spokesperson said. “We remain focused on completing the transaction as quickly as possible and delivering its benefits to consumers, creators and the entertainment industry as a whole.”
It’s a significant milestone for the roughly $110 billion deal, although it could still face legal challenges from state attorneys general. California Attorney General Rob Bonta is among the officials reviewing the proposal, and the deal “remains under investigation by the California Department of Justice,” his office said in a statement Friday.
Paramount’s stock was up about 3% in after-hours trading. Politico was first to report the government’s endorsement.
Paramount CEO David Ellison told investors during the company’s April earnings conference call that the deal was on track to close by September, after which ticking fees would kick in, making the deal more expensive. The proposed merger has already received approval from WBD shareholders.
In late February, Paramount offered $31 per share to acquire all of WBD’s assets, which include cable television networks like CNN and TBS, the Warner Bros. movie studio. and the streaming platform HBO Max. The proposal follows several offers and upended an agreement with Netflix for that company to acquire WBD’s streaming and movie assets.
Paramount is still awaiting regulatory approval from European authorities. Earlier this week, the European Union regulator began reviewing the proposed deal and set a July 14 deadline for review, according to a notice on its website.
On Wednesday, Paramount said in a regulatory filing that the deal had received approval from the Australian Competition and Consumer Commission.