The US Department of Justice has quietly approved Paramount Skydance's $111 billion acquisition of Warner Bros. Discovery, much to the surprise of its own career lawyers who had been leaning towards a lawsuit.
A rigorous eight-month investigation by DOJ staff suggested that the deal would not harm American consumers or competition, leading senior leaders to close it before concerns could be voiced. Senator Elizabeth Warren expressed doubt about whether this merger was a political favour, warning of potential corruption.
Staffers were also questioning how the combined company could make 30 theatrical releases a year given its increased debt load. Despite these reservations, DOJ leadership deemed Paramount's financial situation irrelevant to challenging the deal.
The approval is particularly noteworthy as it involves large equity stakes from Saudi Arabia, the UAE and Qatar, requiring an FCC waiver despite FCC Chairman Brendan Carr’s support for the merger.
