Justice Department overrides internal objections, clearing the deal on grounds it boosts competition in streaming and film distribution.
The Justice Department finalized its approval of Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, bypassing formal objections from career staff investigators. The decision was made before the team, which had spent eight months scrutinizing the deal, could formally recommend a lawsuit over antitrust concerns.
Investigators had raised concerns about the merged entity’s ability to sustain a pledge of 30 annual theatrical releases, given its debt burden. However, DOJ leadership dismissed debt as insufficient grounds for legal action, citing Paramount CEO David Ellison’s assurances during a recent interview.
The DOJ released a statement asserting the merger would likely enhance competition across streaming, linear television, and film distribution. Career staffers, excluded from drafting the statement, suspected it was crafted to deter potential challenges from state attorneys general.