The U.S. Department of Justice has closed its antitrust investigation into Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, clearing a major hurdle for the deal. After reviewing over two million documents during an eight-month probe, the DOJ concluded the merger is unlikely to harm competition and could instead strengthen it across streaming, traditional TV, and theatrical film distribution. Regulators noted the combined entity would still face strong competition from industry giants like Netflix, Amazon, and Disney, with no evidence the deal would reduce consumer choice.

The decision follows scrutiny of a competing, previously reported proposal from Netflix to acquire key Warner Bros. assets, which provided DOJ investigators with additional context on the media landscape. Despite the federal clearance, the merger faces ongoing challenges. Senator Elizabeth Warren criticized the decision, calling the deal 'terrible news' and alleging corruption, urging state attorneys general to consider legal action.

State-level officials retain independent authority under antitrust law, meaning further legal hurdles could emerge. Paramount confirmed it has extended debt exchange and tender offers tied to the transaction, aligning with the expected closing timeline. However, the company emphasized the deal remains subject to final conditions and risks.