The antitrust division of the United States Department of Justice announced this Friday that it approved the purchase of Warner Bros. Discovery by Paramount Skydance Corp, worth US$110 billion.
Justice Department officials said in a statement that they have determined that the transaction does not pose a threat to competition in the streaming industry, traditional television or film.
The approval gives Paramount another regulatory green light, as it seeks to ward off a possible challenge to the deal from US states.
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In April, Paramount also asked the US Federal Communications Commission (FCC) to approve foreign investments supporting the acquisition. US senators expressed concerns about the participation of Middle Eastern sovereign wealth funds and Chinese companies. The FCC has not yet announced a decision.
Analysts had expected the DOJ not to challenge the deal due to Paramount’s political connections. Paramount Chief Executive David Ellison’s father, billionaire Oracle co-founder Larry Ellison, cultivated ties to President Donald Trump, and the company hired former Trump employees.
Paramount argues the deal does not present antitrust concerns and says the merged company will increase competitive pressure on Disney and Netflix.
However, several Hollywood professionals — including actors, directors, screenwriters and producers — have expressed concerns that the merger will result in fewer jobs and less diversity in storytelling.
California, New York and other US states are preparing legal action to block the deal, sources familiar with the matter told Reuters last week.
