The Justice Department has signed off on Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, clearing the way for a merger that will unite two historic Hollywood studios and reshape the American entertainment industry.

Details of the Deal

Paramount owns a 114-year-old film studio, the Paramount+ streaming service, and the CBS broadcast network. Warner owns a 116-year-old film studio, the HBO Max streaming service, and a suite of cable channels, including CNN.

Paramount Skydance CEO David Ellison has previously vowed to “honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company.” The 43-year-old media executive is the son of technology magnate Larry Ellison, the co-founder of Oracle and an ally of President Donald Trump.

The merger could draw legal challenges from state attorneys general. California Attorney General Rob Bonta has said his office is investigating the tie-up, and a person familiar with the matter said New York Attorney General Letitia James’ office is part of that probe.

Reactions to the Deal

Sen. Elizabeth Warren, D-Mass., who has publicly advocated against the deal, said the Justice Department’s green light was “terrible news for every American.”

European Union officials are reviewing the merger over the deal’s financial backing from three Middle Eastern sovereign wealth funds. In an April filing with the U.S. Securities and Exchange Commission, Paramount said its acquisition of Warner is backed in part by Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’IMAD Holding, and the Qatar Investment Authority.

Original reporting: NBC4 Los Angeles — read the source article.