Justice Department clears 111 billion Paramount-Warner merger despite state challenges

The US Department of Justice on Friday approved Paramount Global’s $111 billion acquisition of Warner Bros. Discovery without conditions, clearing the largest media merger in Hollywood history after an eight-month antitrust review. The decision, announced by the Justice Department’s Antitrust Division, concludes that the deal will not harm competition in film, television or streaming markets. The clearance paves the way for the creation of a new entertainment giant combining Warner’s franchises—including DC, HBO and Cartoon Network—with Paramount’s Paramount Pictures, CBS, Nickelodeon and Pluto TV.

Ten US states, however, have vowed to challenge the merger in court, arguing that it will concentrate too much control over film distribution and streaming content. The coalition, led by California and New York, plans to file a federal lawsuit next week, contending that the combined entity could raise prices for consumers and limit access for independent filmmakers. “We respectfully disagree with the Department’s conclusion,” said California Attorney General Rob Bonta in a statement. “This merger will reduce competition and harm consumers.”

Industry analysts say the deal, first announced in March 2025, reflects a broader consolidation trend in global media, as traditional studios seek scale to compete with tech giants like Netflix and Disney. The new entity, to be led by Paramount CEO Shari Redstone, will control a vast library of films and series spanning a century, from *Star Trek* and *Mission: Impossible* to *Friends* and *The Sopranos*. Analysts at UBS estimate the combined company could generate annual revenues of $50 billion and reach 150 million global streaming subscribers.

The approval comes despite vocal opposition from creative guilds and independent producers, who warn of reduced opportunities for writers, directors and actors. The Directors Guild of America issued a statement calling the merger “a threat to creative diversity,” while the Writers Guild of West held emergency meetings with members this week. “When two of the biggest studios merge, the middle tier of creators gets squeezed,” said DGA president Lesli Linka Glatter.

Paramount and Warner Bros. Discovery have pledged to maintain separate operations during the legal challenge, which could delay integration for months. The companies expect the merger to close by the end of 2026, pending court rulings. In a joint statement, Redstone and Warner Bros. Discovery CEO David Zaslav said the deal would “unlock unprecedented creative and financial opportunities” for audiences worldwide.