US JUSTICE DEPARTMENT APPROVES PARAMOUNT ACQUISITION OF WARNER BROS

The US Department of Justice has closed its investigation into Paramount Skydance's proposed acquisition of Warner Bros Discovery, determining the merger will not harm competition or consumers. The antitrust division concluded the deal will increase competition across the media and entertainment sector, with benefits for American consumers and workers. The agency completed its review on Friday. Paramount Skydance reached the acquisition agreement in late February following months of negotiations.

Regulators assessed multiple competitive concerns in their analysis. The investigation examined whether the merger would reduce competition in video streaming and concluded it would likely increase competition by providing customers a more robust alternative to larger streaming services. The agency determined that YouTube, TikTok and other social media platforms offering video content do not constitute competitive substitutes under established antitrust precedent, though they compete broadly for consumer attention. Regulators also found the combination would not harm competition in linear television, citing strong competition for live programming. On film production and distribution, the agency found extensive competition within the industry has generated greater output and diversity of offerings, which would likely continue.

The department's approval provides significant momentum for the transaction. The decision removes a major federal regulatory obstacle, though state-level challenges remain possible. The companies have argued the merger will benefit growth and consumers through combined HBO Max and Paramount+ content libraries. Paramount was acquired by Skydance last year. Netflix had submitted a rival bid for Warner Bros Discovery that ultimately did not succeed.