Paramount Skydance merger with Warner Bros. Discovery won't harm
competition, consumers, DOJ says
[June 13, 2026] By
ALEX VEIGA
An investigation by the U.S. Justice Department into Paramount
Skydance’s proposed acquisition of Warner Bros. Discovery has determined
that the mammoth Hollywood media merger is not likely to harm
competition in the industry or be harmful for consumers.
The agency said Friday that it closed its probe into the deal, with
regulators at its antitrust division concluding that the impact of the
merger “will be to increase competition across the media and
entertainment ecosystem, with benefits for American consumers and
workers.”
David Ellison’s Paramount Skydance reached a deal to acquire Warner
Bros. Discovery in late February. Paramount’s victory came after months
of negotiations and a rival bid by Netflix that ultimately fell short.
Paramount was bought by Skydance last year.
The companies contend that merging will be good for growth in the
industry and give consumers access to more content, particularly if the
HBO Max and Paramount+ libraries are combined. But critics have decried
what further consolidation could mean in an industry already controlled
by just a few major players.
Among the potential market impacts from the merger, regulators weighed
whether the deal would hurt competition in video streaming. They
concluded that the merger would likely increase competition by giving
customers a more “robust competitive alternative” to larger video
streaming alternatives.
The agency also determined that YouTube, TikTok and other social media
portals that also offer video streaming content “do not appear to be
competitive substitutes here under well-established antitrust legal
precedents, although they compete broadly for consumer attention.”
Regulators also concluded that the merger is not likely to harm
competition for so-called linear television, citing a strong competition
for live programming.
On the question of competition in Hollywood, regulators found that the
combination of two major film studio operators is not likely to harm
competition in studio development, production or distribution of films
for theatrical release.
“Instead, evidence shows extensive competition within the industry,
which has generated greater output and diversity of film offerings, and
is likely to continue unabated,” regulators concluded.
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The Paramount Pictures water tower is seen in Los Angeles, Thursday,
Dec. 18, 2025, with the Hollywood sign in the distance. (AP
Photo/Jae C. Hong,File)
Thousands of actors, directors,
writers and other industry professionals have voiced “unequivocal
opposition” to the Paramount deal, arguing that further
consolidation will lead to job losses and fewer choices for
filmmakers and moviegoers. Many lawmakers have similarly sounded the
alarm.
Ellison, chief executive of Paramount Skydance, has pledged to keep
Paramount and Warner Bros. as standalone movie studio operations,
and vowed to release a combined 30 movies a year in theaters.
Paramount has acknowledged the merger will also lead to significant
cuts due to duplication.
While the Trump administration’s Justice Department has now
confirmed it won’t be challenging Paramount’s $81 billion purchase
of Warner, the mega merger is still being reviewed by other
regulators both in the U.S. and abroad.
California Attorney General Rob Bonta has been particularly vocal
about the transaction, and he said his state is investigating it.
Beyond the U.S., European regulators are also looking into the deal.
The European Commission has listed July 7 as a tentative deadline
for its review. And the U.K.’s Competition and Markets Authority is
aiming to make an initial decision about its probe by early August.
Paramount and Warner previously said that they hoped to close their
deal sometime in the third quarter of this year. And that clock is
ticking. Paramount pledged to give shareholders some compensation if
the acquisition doesn’t close by Sept. 30 — in the form of a 25-cent
per share “ticking fee” for every quarter past that date. It has
also agreed to a regulatory termination fee of $7 billion.
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