The Justice Department’s Antitrust Division approved Paramount Skydance’s $111 billion bid for Warner Bros. Discovery (WBD) on Friday, June 12, 2026, according to a news release.
DOJ officials concluded the transaction did not pose a threat to competition and declined to challenge the deal following an extensive eight-month review.
In a statement, the department said the evidence gathered during its investigation “is not likely to result in harm to competition or American consumers, including with respect to: (1) streaming video on demand (“SVOD”); (2) linear television; and (3) studio development, production, or distribution of films for theatrical release.”
The department said investigators reviewed over two million documents, conducted numerous depositions, and coordinated with state attorneys general before reaching their decision.
Inside The Paramount-WBD Merger And Controversy
WBD is the parent company of major film and television studios, CNN, and HBO Max. The combined streaming offering is expected to reach roughly 200 million subscribers.
The approval of the merger follows months of outreach by Paramount executives, including CEO David Ellison, who reportedly met at least twice with Antitrust Division attorneys and senior DOJ officials, POLITICO reports. Throughout those meetings, Paramount maintained that the merger would strengthen, rather than reduce, competition, positioning the combined company to better compete with major streaming platforms and technology firms.
As one of the most closely watched media merger reviews of the Trump administration, it has drawn criticism from many in the entertainment industry, who fear it could lead to significant layoffs and further consolidation in the streaming market, the outlet notes.
A Paramount spokesperson said the merger would create “a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment,” per POLITICO.
For its part, WBD shareholders approved the Paramount merger on April 23, according to a news release.
“We appreciate the support and confidence our stockholders have placed in us to unlock the full value of our world-class entertainment portfolio,” said Samuel A. Di Piazza Jr., chair of WBD’s Board of Directors. “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.”
In response, a group of Paramount subscribers filed a lawsuit in California federal court on April 30, arguing that the transaction would reduce competition in the streaming, news, and theatrical distribution markets and violate federal antitrust laws, AFROTECH™ previously reported.
According to the complaint, the merger could enable Paramount to “raise prices, reduce output, narrow slates, reduce quality and worsen consumer-facing terms, including through control of distribution, exclusivity, windowing and licensing,” per The Hollywood Reporter. The plaintiffs also contend the combined company would control approximately 24% of the theatrical distribution market, making it the industry’s largest distributor.
The lawsuit asks the court to block the merger and unwind Skydance’s acquisition of Paramount.
Paramount said the lawsuit is “without merit.” The company added, “The combination of Paramount and WBD will create a stronger competitor that is well positioned to serve as a champion for creative talent and consumer choice,” according to The Hollywood Reporter.
Paramount And Netflix’s Former Bidding War For Warner Bros. Discovery
As AFROTECH™ previously reported, Paramount and Netflix spent months in a bidding war for WBD. Netflix initially submitted an offer with an enterprise value of approximately $82.7 billion and described its proposal as a pathway to “the next century of storytelling.”
Paramount later submitted a competing bid valued at approximately $108.4 billion, or $30 per share, which has since increased to $31 per share.
In February 2026, Netflix announced it would not raise its offer, saying its proposed transaction would have delivered shareholder value, but matching Paramount Skydance’s bid would not be “financially attractive.”
Paramount later accused Netflix of trying to derail the transaction, a claim the company referred to as “absurd,” per POLITICO.
Following WBD shareholders’ approval, David Zaslav, president and CEO of WBD, said the “historic transaction” will deliver exceptional value to stockholders, per a press release.
“We will continue to work with Paramount to complete the remaining steps in this process that will create a leading, next-generation media and entertainment company,” he added.
As streaming competition intensifies and legacy media companies race to scale, the Paramount-WBD merger underscores the accelerating consolidation reshaping the entertainment industry.
