The Antitrust Division said it had completed its analysis of the proposed merger after an eight-month investigation and reviewed evidence covering streaming video on demand, linear television, and studio development, production or distribution of films for theatrical release. The statement means the department will not bring a federal antitrust challenge based on the record it reviewed.
The decision does not mean the transaction has closed. Warner Bros. Discovery said on 23 April that its stockholders had approved the transaction, but that closing was still expected in the third quarter of 2026 subject to customary conditions, including regulatory clearances.
The company said in March that Warner Bros. Discovery shareholders would receive $31.00 per common share in cash under the Paramount Skydance merger agreement. It said the price represented a 147% premium to Warner Bros. Discovery's unaffected stock price of $12.54 on 10 September 2025, and that shareholders would receive a $0.25-per-share quarterly ticking fee if the transaction had not closed by 30 September 2026.
DOJ said its investigation included more than two million documents from more than 80 custodians, data productions, depositions and submissions from third parties across media and entertainment. State attorney-general offices participated through voluntary confidentiality waivers that allowed information-sharing and attendance at depositions, according to the department.
The division's central legal view was that the combined company would remain constrained by competition. DOJ said Paramount and Warner Bros. Discovery were late entrants in subscription streaming compared with the largest platforms, and that the merged company was likely to offer a stronger alternative rather than reduce competition in streaming video on demand.
On theatrical film distribution, DOJ said the parties compete with traditional studios including Disney, Sony, Universal, Lionsgate and Amazon-owned MGM, as well as independent studios including A24, NEON and Blumhouse. The department said the evidence showed continuing competition and did not support a challenge over studio development, production or theatrical release.