The US Justice Department has approved the $111 billion merger between Paramount and Warner Bros. This decision removes a significant regulatory hurdle for a major acquisition that could reshape Hollywood.
The department's antitrust division stated that the merger will increase competition in the media and entertainment sector. The agency assessed that competition in streaming, linear television, and film development, production, and distribution will not be harmed.
The approval does not include any asset divestitures or behavioral commitments from the Justice Department, marking a strong step in favor of the deal.
Nevertheless, the process is not fully closed. It has been reported that several states led by California are preparing lawsuits to block the deal, with a lawsuit expected to be filed within a month.
New York, Colorado, Oregon, Nevada, Washington, Connecticut, and Tennessee are also considered likely to join this initiative. Additionally, consumers have reportedly filed lawsuits opposing the acquisition.
US Senator Elizabeth Warren has called on state attorneys general to oppose the merger. Warren criticized the deal, arguing that allowing billionaires close to Trump to control viewing habits and pricing would be a negative development.
Paramount argues that the merger will strengthen competition and make it easier to compete with technology companies. The company says it is focused on completing the deal as soon as possible.
Paramount's chief legal officer Makan Delrahim also stated that regulators in Saudi Arabia, Ukraine, Serbia, and North Macedonia concluded the deal does not violate antitrust laws. Foreign direct investment authorities in Germany, Italy, France, Romania, Slovenia, Belgium, the Czech Republic, and New Zealand have also approved the merger.
