Key Takeaways:
The Justice Department approved Paramount Skydance's $111 billion acquisition of Warner Bros. Discovery on June 12, ending an eight-month antitrust review that drew scrutiny over the Ellison family's ties to President Donald Trump.
"The division has completed its analysis of the proposed merger and determined based on the evidence received that the transaction is not likely to result in harm to competition or American consumers," the DOJ's Antitrust Division said in a statement, citing streaming video, linear television and theatrical film distribution as areas where no competitive threat was found.
Paramount offered $31 per share in cash for all of WBD, topping an earlier $82.7 billion bid from Netflix that would have carved out the company's cable networks. The winning offer values WBD at roughly $110.9 billion including debt and represents a premium of about 12% to the stock's undisturbed price before takeover talks emerged in September 2025. Paramount expects the deal to close by September, after which a ticking fee of $650 million per quarter kicks in if delayed.
The approval caps a bidding war that pitted Paramount against Netflix for months and became one of the most politically charged media mergers in recent history. Larry Ellison, the Oracle co-founder and father of Paramount Skydance CEO David Ellison, gave roughly $45 million to a political nonprofit supporting Trump's 2024 campaign, according to people familiar with the donations, and has given additional undisclosed sums since the election. The elder Ellison also called Trump after Netflix's initial deal was announced to argue the transaction would hurt competition, the Wall Street Journal reported.
Regulatory path and remaining hurdles
The DOJ reviewed more than two million documents and conducted numerous depositions before clearing the deal. Investigators also coordinated with state attorneys general, though California Attorney General Rob Bonta said his office's probe remains open. "The California Department of Justice has an open investigation, and we intend to be vigorous in our review," Bonta wrote on social media in February.
European regulators are still reviewing the transaction, with the EU's competition arm set to decide by July 14. The UK's Competition and Markets Authority began a formal phase two review on June 9, with a decision expected by early August. Australia's competition authority cleared the deal on June 10, and China's State Administration for Market Regulation followed on June 17.
What the combined company looks like
The merged entity would control about 200 million streaming subscribers across Paramount+ and HBO Max, which Paramount plans to combine into a single service. Paramount COO Andy Gordon told analysts in March the company expects more than $6 billion in cost synergies within three years, with most savings coming from non-labor areas.
The deal reunites cable networks including MTV, Nickelodeon, VH1 and Comedy Central with Warner properties after more than 40 years. The combined company would own 59 cable networks, Warner Bros. and Paramount film studios, DC Studios, CNN, CBS News and major sports rights including the NFL and UFC.
WBD shareholders approved the merger on April 23, though they voted against compensation packages for CEO David Zaslav and other executives. Zaslav stands to receive about $500 million from the transaction, while David Ellison is set for $150 million in cash and stock awards after closing.
A group of Paramount subscribers filed a lawsuit in California federal court on April 30 seeking to block the deal on antitrust grounds, arguing the combined company would control about 24% of the theatrical distribution market. Paramount has called the lawsuit "without merit."
This article is for informational purposes only and does not constitute investment advice.
