Paramount Skydance Clears a Major Hurdle Nobody Saw Coming
Rolling Out
Last updated: June 15, 2026
The U.S. Department of Justice has granted federal antitrust approval for Paramount's proposed $110 billion acquisition of Warner Bros. Discovery (WBD). This milestone brings the two entertainment companies significantly closer to merging, with Paramount viewing the deal as a strategy for survival against tech platforms.
- Paramount officially proposed the acquisition in late February, offering $31 per share for all WBD assets, including CNN, TBS, the Warner Bros. film studio, and HBO Max.
- This offer superseded a competing arrangement with Netflix for WBD's streaming and film assets.
- The Justice Department found no credible evidence that the transaction would harm competition or consumers, a rare outcome for such a large-scale merger.
- Paramount CEO David Ellison has indicated the deal is on track to close by September, after which a ticking fee will increase the transaction's cost if it's delayed.
- WBD shareholders have already approved the deal, but potential legal challenges from state attorneys general, such as California's Department of Justice, remain.
- The European Union is conducting its own formal review with a July 14 deadline, while Australia has already cleared the merger.
- The merger signifies a bet by legacy media companies on scale to navigate declining cable revenues, fragmented audiences, and the growing influence of tech companies.
