DOJ Cleared Paramount Deal Without Hearing Objections

Federal antitrust lawyers thought they were weeks away from weighing in on Paramount Skydance's proposed purchase of Warner Bros. Discovery; instead, their bosses shut the probe down. The Justice Department's political leaders ended the agency's investigation before staff attorneys—who were leaning toward urging a lawsuit on competition grounds—finished their formal recommendation, people familiar with the process told the Wall Street Journal. The DOJ then issued an unusually upbeat statement saying the merger is expected to boost competition, particularly in streaming, and won't harm the already crowded studio marketplace, clearing the way for the deal to go through.

Senior officials reportedly were swayed by Paramount CEO David Ellison in a two-hour interview and dismissed concerns over the combined company's heavy debt and its pledge to crank out 30 theatrical releases a year. Career staffers didn't directly push for litigation in meetings with leaders, but some now believe the glowing public statement was crafted to complicate any court challenge from states. The Paramount-Warner deal, still under review in Europe, is one of several cases where DOJ antitrust staffers under the second Trump administration say they've been sidelined, including the Live Nation monopoly case that states pursued—and won—after DOJ settled, per the Journal.