Paramount Skydance (Paramount Skydance (PSKY)) just got a big thumbs-up from the U.S. Department of Justice for its planned $110 billion acquisition of Warner Bros. Discovery (Warner Bros. Discovery (WBD)). On Friday, the DOJ said it wrapped up its review and found that the merger is unlikely to harm competition or consumers.
“Based on the evidence received in its investigation,” the department concluded “that the transaction is not likely to result in harm to competition or American consumers.”
That’s a major regulatory hurdle cleared for a deal that would combine two of Hollywood’s biggest studios. But it’s not a done deal yet.
Paramount, unsurprisingly, was thrilled. In a statement, the company argued that the merger would actually make the entertainment industry more competitive, not less. “This deal is pro-competitive, resulting in 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,” a Paramount spokesperson said. The company added that it’s focused on closing the transaction “as soon as possible.”
Paramount and WBD did not immediately respond to requests for comment.
But while the feds are on board, state and international regulators are still poking around. California Attorney General Rob Bonta posted on X that “the merger of Warner Bros and Paramount is not a done deal and remains under investigation by my office.” So the California Department of Justice is still looking at it.
Across the Atlantic, European regulators have started their own review and set a July 14 deadline for an initial assessment. On the brighter side, Paramount disclosed this week that Australia’s competition regulator has already approved the transaction.
Investors seemed cautiously optimistic. Shares of Paramount closed Friday at $10.47, down 0.19% for the day, but rose 2.77% to $10.76 in after-hours trading.
So the DOJ is satisfied, but the deal still faces a few more hurdles before it can cross the finish line.
