TLDR
- The U.S. Department of Justice has approved Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery
- The DOJ found the deal would increase competition, not harm it, and poses no antitrust concerns
- PSKY stock closed at $10.47 on Friday, then jumped 2.77% to $10.76 in after-hours trading
- The merger still faces review from California’s Attorney General and European regulators, with an EU deadline of July 14
- Australia’s competition regulator has already signed off on the deal
Paramount Skydance has cleared one of its biggest hurdles in the race to acquire Warner Bros. Discovery. The U.S. Department of Justice said Friday it completed its review and found no reason to block the $110 billion deal.
PSKY closed at $10.47 on Friday, down slightly on the day, before jumping 2.77% to $10.76 in after-hours trading after the DOJ announcement.
Paramount Skydance Corporation Class B Common Stock, PSKY
The DOJ said the deal is “not likely to result in harm to competition or American consumers.” It went further, saying the merger would likely increase competition across the media and entertainment space.
Paramount welcomed the decision. A spokesperson called the deal “pro-competitive,” arguing it would create a stronger company better positioned to go up against big tech platforms.
The company said it wants to close the transaction “as soon as possible.”
Not Done Yet
The deal still has some road ahead. California Attorney General Rob Bonta confirmed the transaction remains under review by the California Department of Justice. Bonta had previously flagged concerns about further consolidation in entertainment.
Earlier this month, he said he would soon decide whether to take formal legal action. As of Friday, a spokesperson said the review “remains under investigation.”
European regulators are also in the picture. They have set a July 14 deadline for their initial assessment. Australia’s regulator, however, has already approved the deal.
More than 1,400 Hollywood actors, directors and filmmakers signed a letter opposing the merger in April, citing fears of job losses and fewer opportunities for creators.
What the Deal Brings Together
If completed, the merged company would be one of the largest media groups in the world.
Paramount would add CNN, HBO, TBS, TNT, TCM, DC Studios, and New Line Cinema to a portfolio that already includes Paramount Pictures, CBS, Showtime, and Nickelodeon.
Skydance merged with Paramount in 2025 and cut roughly 10% of its workforce during that process.
Warner Bros. had originally struck a deal with Netflix for around $82 billion. Paramount came in with a rival bid, which Warner Bros. initially rejected.
Paramount raised its offer to a level Netflix said was “no longer financially attractive” to counter. Warner Bros. ultimately went with Paramount’s proposal.
Paramount executives have pointed to billions in projected cost savings as a key reason for the deal.
The DOJ’s green light puts the deal one step closer to completion, with California and Europe the remaining regulatory gates to clear.
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