US DOJ approves Paramount's $111 billion bid for Warner Bro

The US Department of Justice has approved Paramount Skydance’s $111 billion (£82.8 billion) acquisition of Warner Bros Discovery, marking a major step toward one of the largest media mergers in Hollywood history.

The approval allows the takeover process of the company, which owns CNN, HBO, Warner Bros Studios, and other major entertainment assets, to proceed, though additional regulatory reviews remain ongoing at the state level, BBC reports. 

In a statement, the Justice Department said it conducted a “rigorous” review of the proposed deal and concluded it was not likely to harm competition.

It said the merger was expected to “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”

However, the deal still faces scrutiny, including from California Attorney General Rob Bonta, who has previously raised concerns that further consolidation in the entertainment industry could reduce competition amid ongoing layoffs and cost-cutting across Hollywood. Bonta has said he is considering legal action, though his office confirmed the review remains under investigation.

The proposed merger has also drawn criticism from industry figures. In April, more than 1,400 actors, directors, and filmmakers signed an open letter opposing the deal, warning it could reduce opportunities in the entertainment sector.

“The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world,” the letter stated.

Paramount Skydance, formed following its 2025 merger and subsequent workforce reductions of around 10%, has argued the acquisition would generate significant cost savings and strengthen its global competitiveness.

If completed, the deal would bring together a vast portfolio of media assets, including Paramount Pictures, CBS, Showtime, and Nickelodeon, with Warner Bros properties such as CNN, HBO, DC Studios, New Line Cinema, TBS, TNT, and TCM.

The transaction follows a competitive bidding process in which Warner Bros initially explored a sale to Netflix. Paramount later submitted a higher competing offer, ultimately leading to the current agreement.

By Sabina Mammadli