Justice Department Closes Review Allowing Paramount-Warner Bros. Discovery Merger

The Antitrust Division of the U.S. Department of Justice closed its investigation into the proposed merger of Paramount Skydance and Warner Bros. Discovery on 13 June 2026. The division stated that the transaction is "not likely to result in harm to competition or American consumers."

The review examined the companies' combined market share, contracts, licensing deals, and audience data. Officials concluded the deal would not reduce competition in film, television production, or streaming services, would not raise prices for viewers, and would not shrink content output. The department also stated the merger "could increase competition."

David Ellison, Paramount chief executive, led the takeover. Larry Ellison, Oracle co-founder and David Ellison's father, largely financed the bid and provided the financial guarantee that secured the Warner Bros. Discovery board's approval after a bidding contest with Netflix.

The combined company will control CNN, Warner Bros. Pictures, and the HBO Max streaming service, along with extensive libraries of older titles and current productions.

A coalition of about 10 states led by California is preparing an antitrust lawsuit that could be filed this month. The European Commission is also reviewing the merger. The deal remains under UK scrutiny with a new investigation. Hundreds of actors and directors have signed a letter opposing the deal, citing concerns over further consolidation and reduced production.

The Justice Department directly addressed those concerns, stating the evidence did not show the merger would reduce output.