The Justice Department will not challenge Paramount’s merger with Warner Bros. Discovery, clearing a major hurdle for the $111 billion deal, two sources familiar with the agency’s plans said on Friday.
The Justice Department may not be the final obstacle for Paramount. Some state attorneys general have pledged to take a hard look at the deal, and could make their own legal challenge.
The merger, involving two of the five major movie studios, has raised concerns that it could reduce the number of potential buyers for scripts and potential employers for actors and crew members, driving down wages and the prices paid for creative material. The Justice Department blocked a publishing deal in 2022 over similar claims.
The tech scion David Ellison bought Paramount last year with backing from his father, Larry Ellison, the founder of the software giant Oracle and a friend of President Trump. He then outbid Netflix for Warner Bros. Discovery.
The Ellisons plan to join Paramount’s movie studio with Warner Bros., which has made films like “Superman,” “A Minecraft Movie” and “Sinners.” The combined company would own two major streaming services — Paramount+ and HBO Max — and two prominent sources of television news.
This is a developing story. Check back for updates.
