Opponents turn to states as DOJ clears $110B Paramount-Warner merger

The U.S. Department of Justice on Friday approved the $110 billion merger between Paramount Skydance and Warner Bros. Discovery without conditions, clearing a path for the massive consolidation. Critics immediately condemned the move as a victory for cronyism, shifting their efforts to state-level attorneys general to halt the deal.

The DOJ’s Antitrust Division signed off on the union without requiring divestitures or behavioral remedies, ignoring warnings that the deal would stifle competition, trigger layoffs, and concentrate media power in the hands of the Ellison family. The decision allows the creation of a new streaming giant boasting approximately 200 million subscribers, effectively merging two historic Hollywood rivals.

Robert Weissman, co-president of Public Citizen, labeled the approval an act of "cronyism" that threatens free speech and consumer choice. Similarly, Free Press co-CEO Craig Aaron argued that the federal review process was compromised from the start, claiming the company promised editorial shifts to secure administration favor. Lawmakers like Rep. Jamie Raskin previously warned that the merger mirrors the editorial pressures already observed at CBS, which saw staff departures and the cancellation of high-profile programs following the earlier Skydance acquisition.

While the federal hurdle is cleared, the deal faces potential state-led antitrust litigation. California Attorney General Rob Bonta is currently conducting a "vigorous" review of the merger’s impact on labor and media markets. Reports indicate that California and New York are among the states preparing to challenge the consolidation in court, banking on the argument that the merger endangers both competition and the independence of newsrooms like CNN.