The Justice Department has approved Paramount Skydance's proposed acquisition of Warner Bros. Discovery, according to a source cited by NBC News. The decision greenlights a $110 billion merger that would combine two of Hollywood's biggest studio empires — Paramount, owner of CBS, and the much larger Warner, which includes HBO and CNN.
The approval marks a pivotal moment for an industry grappling with cord-cutting and streaming wars. The merged entity would control a vast library of content and major networks, potentially reshaping how television and film are produced and distributed across the United States.
NBC News confirmed the DOJ's sign-off, while Politico and CNBC also reported the clearance. The $110 billion figure was cited by NPR, though Deadline pegged the deal at $111 billion. Reuters reported exclusively that multiple U.S. states are preparing a lawsuit to block the transaction, signaling potential antitrust battles ahead.
If state lawsuits materialize, they could delay or derail the merger's closing. The outcome will hinge on whether the combined company is seen as a threat to competition in media and advertising markets.
A coalition of state attorneys general is reportedly weighing a legal challenge, arguing the deal would concentrate too much power in too few hands. Their next move could set the stage for a protracted court fight.