Paramount Skydance CEO David Ellison speaks on stage in the course of the Paramount Photos presentation at CinemaCon at The Colosseum at Caesars Palace in Las Vegas, April 16, 2026.
Valerie Macon | AFP | Getty Photographs
The U.S. Division of Justice has signed off on Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, clearing the merger of federal antitrust issues.
“The Division has accomplished its evaluation of the proposed merger of Paramount and Warner Bros. and decided based mostly on the proof acquired in its investigation that the transaction just isn’t prone to end in hurt to competitors or American shoppers,” the division stated in its willpower.
A Paramount spokesperson stated in a press release the corporate was “grateful for the Division of Justice’s thorough assessment of this transaction, in addition to the work of the opposite businesses which have accomplished their evaluations and offered clearance to this point.
“This deal is pro-competitive, leading to a stronger firm higher positioned to compete in opposition to dominant know-how platforms in an business more and more outlined by intense competitors for audiences, expertise, know-how, and funding,” the spokesperson stated. “We stay targeted on finishing the transaction as quickly as doable and delivering its advantages to shoppers, creators and the leisure business as a complete.”
It is an necessary milestone for the roughly $110 billion deal, although it might nonetheless face authorized challenges from state attorneys common. California Lawyer Common Rob Bonta has been among the many officers reviewing the proposal, and the deal “stays beneath investigation by the California Division of Justice,” his workplace stated in a press release Friday.
Paramount’s inventory was up about 3% in after-hours buying and selling. Politico first reported the federal government approval.
Paramount CEO David Ellison instructed traders in the course of the firm’s April earnings name that the deal was on observe to shut by September, after which level a so-called ticking payment kicks in, making the deal dearer. The proposed merger has already acquired WBD shareholder approval.
In late February, Paramount supplied $31 per share to amass all of WBD’s property, which incorporates cable TV networks like CNN and TBS, the Warner Bros. movie studio and streaming platform HBO Max. The proposal got here following a number of presents and upended a deal with Netflix for that firm to amass WBD’s streaming and movie property.
Paramount continues to be awaiting regulatory approval from European officers. Earlier this week the European Union’s regulator arm started reviewing the proposed deal and set a July 14 deadline for vetting, in response to a discover on its web site.
On Wednesday Paramount stated in a regulatory submitting that the deal acquired approval from the Australian Competitors and Shopper Fee.