Paramount's $111-billion Warner Bros. acquisition clears key hurdle

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The U.S.Justice Department cleared the way for Paramount Skydance’s $111-billion purchase of Warner Bros.

Discovery — a major milestone that moves David Ellison closer to his goal.After a months-long review, Justice Department antitrust regulators on Friday concluded the combination would not violate federal anti-competition laws.Approval had been expected because President Trump — who has friendly ties with Ellison and his father, tech billionaire Larry Ellison — favors the deal.The government stopped short of asking Paramount to make concessions or divestitures.Antitrust regulators found that “based on the evidence received in its investigation ...

the transaction is not likely to result in harm to competition or American consumers,” the Justice Department division said in a statement.They looked at whether the merger would give Paramount too much power in the streaming video on demand market; the linear television channel space and “studio development, production, or distribution of films for theatrical release” but did not find potential antitrust violations, the Justice Department said.Ellison has promised to continue releasing 30 films a year with a combined Warner Bros.-Paramount studio.“We are grateful for the Department of Justice’s thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date,” Paramount said in a statement.

“This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment.We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators, and the entertainment industry as a whole,” Paramount said.Paramount wants to finaliz...