DOJ Clears Paramount-WBD Merger, No Conditions

Discovery without requiring any divestitures, behavioral remedies, or concessions, clearing a significant regulatory hurdle for the media giants. The DOJ concluded its rigorous eight-month investigation, stating the transaction is not likely to harm competition or American consumers across streaming, linear TV, and film production, as confirmed by Politico.

This approval comes despite major industry backlash, with over 5,500 filmmakers, actors, and Hollywood professionals, including the Writers Guild of America and notable figures like Robert De Niro and Florence Pugh, signing an open letter opposing the deal due to concerns over job losses, price increases, and reduced competition. The Teamsters also urged the DOJ to block the merger without job safeguards.

Senator Elizabeth Warren (D-Mass.) criticized the decision, calling it "terrible news" and alleging "corruption and influence-peddling," urging state attorneys general to pursue litigation. Paramount Skydance expressed gratitude for the review, asserting the deal is pro-competitive and will create a stronger company better positioned to compete against dominant technology platforms.

The company anticipates over $6 billion in cost savings. However, the merger still faces potential legal challenges from state attorneys general and ongoing regulatory reviews in Europe and the U.K., which are examining foreign investment from Saudi, Qatar, and Abu Dhabi sovereign wealth funds totaling approximately $24 billion, with deadlines in July.

Paramount's chief legal officer, Makan Delrahim, accused Netflix of lobbying against the deal, a claim Netflix denied.