Paramount-Warner Bros Merger Clears DOJ, Faces State Lawsuits

The U.S. Department of Justice’s Antitrust Division concluded that the $111 billion acquisition of Warner Bros. Discovery by Paramount Skydance poses no competition problem, ending its eight‑month investigation without objection. Paramount CEO David Ellison, whose father is Oracle co‑founder Larry Ellison, expects the deal to close in mid‑July.

Despite the federal clearance, a coalition of states – led by California and New York and joined by Oregon, Pennsylvania and others – is preparing coordinated lawsuits to block the merger. Regulators argue the combination could raise streaming prices, cut up to $6 billion in costs, reduce film output choices and eliminate jobs. Oregon Attorney General Dan Rayfield has filed a motion seeking a 60‑day pause and an order compelling Paramount to produce lobbying and “Project Warrior” documents.

Industry observers note that the merger will unite two of Hollywood’s four major studios, create a third‑largest streaming competitor to Netflix, Disney and Amazon, and place CNN and CBS News under a single corporate umbrella, prompting concerns about editorial control and staff morale. If a court blocks the transaction, Paramount faces a $650 million quarterly “ticking fee” to Warner Bros. shareholders and could see the deal delayed for months.