US Approves Paramount/Warner Bros. Merger, Surprising DOJ Lawyers, Report Says

The US Department of Justice (DOJ) has approved the merger of media giants Paramount and Warner Bros., surprising the department's own lawyers, according to a report. The approval came despite earlier statements by officials, including Acting Assistant Attorney General Omeed Assefi, who told Reuters in March that the deal would not be fast-tracked for political reasons. "The idea that somehow enforcement has been politicized is ludicrous," Assefi said.

In its announcement, the DOJ said the merger, which combines Paramount+ and HBO Max, is likely to increase competition in the streaming video market "by offering consumers a more robust competitive alternative" to larger offerings. The department also found that the deal is unlikely to harm competition in the theatrical film development, production, and distribution market. "Instead, the evidence shows extensive competition within the industry, which has generated greater output and diversity of film offerings, and is likely to continue unabated," the DOJ statement said.

Despite federal approval, Paramount faces legal challenges. California, New York, and other US states plan to file a lawsuit in the coming weeks to block the merger. Meanwhile, European Union regulators are scrutinizing the deal's financing and impact on competition.

This situation echoes a recent conflict between states and the Trump administration in the Live Nation case. The Biden-era DOJ and most states sued Live Nation in 2024, but the Trump administration blindsided state attorneys general by agreeing to drop its breakup pursuit during the trial. The states continued litigation and won; a federal jury ruled in April that Live Nation and Ticketmaster operate an illegal monopoly that overcharged fans for tickets. A separate proceeding is underway to determine damages and potential remedies, which could include breaking up the company.