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.

Merger Details

In a statement, the agency said it determined that the massive merger was “not likely to result in harm to competition or American consumers.” The Justice Department said it reached that conclusion after receiving extensive feedback.

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 vowed to “honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company.”

Reactions to the Merger

However, the deal has faced blowback from some Hollywood professionals and government regulators. In an open letter released in April, more than 1,000 entertainment professionals said the deal would “further consolidate an already concentrated media landscape, reducing competition at a moment when our industries — and the audiences we serve — can least afford it.”

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.”

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.

Original reporting: KTVZ (Central Oregon) — read the source article.