US justice department approves $111bn merger of Paramount and Warner Bros Discovery

The US Department of Justice announced on Friday that it has approved the $111bn merger between Paramount Skydance, controlled by the Ellison family, and Warner Bros Discovery, the parent company of CNN and HBO. The decision came after an eight-month investigation that reviewed over two million documents. The antitrust division stated that the deal is unlikely to harm competition or American consumers in streaming video, linear television, or film studio operations.

Despite US approval, the deal faces hurdles. Earlier this week, the UK's Competition and Markets Authority opened an investigation with a deadline of August 7 to decide whether a deeper review is needed. European regulators are examining the financing of the merger, particularly $24bn in commitments from three Gulf sovereign wealth funds. Australia approved the deal on Tuesday.

Journalists at CBS News and CNN have expressed concerns about a potential merger of the two news networks, which could lead to significant job cuts as the companies aim for $6bn in synergies. There is also longstanding worry about David Ellison and his father Larry, a longtime Trump associate, possibly steering CNN in a more favorable editorial direction toward the president. David Ellison has pledged to protect CNN's editorial independence, but speculation persists about CBS News editor-in-chief Bari Weiss taking over.

A coalition of US state attorneys general, led by California's Rob Bonta, may file a lawsuit to block the merger in the coming weeks. Critics including Senator Elizabeth Warren and Free Press co-CEO Craig Aaron condemned the approval, calling it corrupt and dangerous for democracy.