The Justice Department’s antitrust division completed its review of Paramount’s offer, which was first announced in February after a drawn-out battle for the company behind the Warner Bros. film and television studio, CNN, and HBO. Paramount said Friday that following the review’s conclusion, the company remains focused on completing the transaction as soon as possible. Warner Bros. Discovery shareholders overwhelmingly approved the deal in April, and Paramount executives have told employees to prepare to close as soon as the end of July.
The clearance removes one of the largest hurdles for a deal that would reshape the entertainment industry by putting two legacy movie and TV studios — along with cable networks, streaming services and news outlets — under a single owner. Paramount, led by David Ellison, had faced competition from Netflix earlier in the bidding process before Netflix withdrew in late February.
California Attorney General Rob Bonta said in late February that he was concerned any takeover of Warner Bros. would further consolidate and limit competition in the entertainment industry. Earlier this month, Bonta said he would soon decide on taking formal legal action to block the merger.
In April, more than 1,400 Hollywood actors, directors, and filmmakers signed an open letter opposing the merger. “The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world,” the signatories said.
The deal still needs approval from European regulators. Paramount has said it expects to close the transaction by the end of July. The BBC has contacted the Justice Department and its antitrust division for comment.