Paramount-WBD merger receives approval from Department of Justice

The US Department of Justice has signed this Paramount Skydance Proposed acquisition of Warner Bros. Discoverymerger survey of federal antitrust concerns.

“The Department has completed its analysis of the proposed merger of Paramount and Warner Bros. and has determined, based on the evidence in its investigation, that the transaction is unlikely to result in harm to competition or American consumers,” the department said in its decision.

A Paramount spokesperson said in a statement that the company is “grateful for the Department of Justice’s comprehensive review of this transaction, as well as the work of other agencies that have completed their reviews and provided clearance to date.”

“This transaction is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology and investment,” the spokesperson said. “We are focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators and the entertainment industry as a whole.”

This is an important milestone for the nearly $110 billion deal, though it still faces legal challenges from state attorneys general. California Attorney General Rob Bonta was among the officials who reviewed the proposal, and the deal “remains under investigation by the California Department of Justice,” California Attorney General Rob Bonta’s office said in a statement on Friday.

Paramount stock rose about 3% in after-hours trading. Politico was the first to report the government’s approval.

Paramount CEO David Ellison told investors during the company’s April earnings call that the deal was on track to close by September, after which so-called visa fees would apply, making the deal more expensive. The proposed merger has already received approval from World Bank shareholders.

In late February, Paramount offered $31 per share to acquire all of WBD’s assets, which include cable television networks such as CNN and TBS and the Warner Bros. film studio. And the streaming platform HBO Max. The proposal came after multiple offers and turned the deal upside down Netflix For that company to acquire WBD’s broadcast and film assets.

Paramount is still awaiting regulatory approval from European officials. Earlier this week, the European Union’s regulatory arm began reviewing the proposed deal and set July 14 as an audit deadline, according to a notice on its website.

Paramount said on Wednesday in a regulatory filing that the deal had received approval from the Australian Competition and Consumer Commission.