Paramount’s Warner Bros. Discovery Acquisition Gets Green Light from Justice Department

The US Justice Department has given its stamp of approval to Paramount’s acquisition of Warner Bros. Discovery, clearing the deal on Friday. THR reports that the DOJ has signed off on the massive deal, which removes a potential roadblock for Paramount in its deal to acquire WBD.

The move by the Department of Justice clears the US approval for the $111 billion deal, which was announced in February. Paramount beat out Netflix in a dramatic bidding war that saw the latter company initially announce a deal to buy Warmer Bros. However, Paramount launched a hostile bid that eventually led to WBD agreeing (with Netflix’s consent) to reopen negotiations with Paramount, who put in the new bid that won the company.

The approval does not require Paramount to make any divestitures, behavioral remedies or concessions, according to a report from Politico. Paramount was expected to have a fairly easy time getting approval due to the company’s moderately cordial relationship with the current US presidential administration.

A Paramount spokesperson said in a statement:

“We are grateful for the Department of Justice’s thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date. This deal 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 approval, it must be noted, is not the only potential roadblock that Paramount must navigate. It must also win approval from the FCC, the European Union, and customers among others. A group of states including California are preparing a lawsuit to block the deal, which is expected to be filed this month and could include the likes of New York, Colorado, Oregon, Nevada, Washington, Connecticut and Tennessee.

Warner Bros. Discovery is the broadcast partner of AEW. Tony Khan has expressed optimism about Paramount acquiring WBD, noting that he expects Paramount to stick with AEW “100%.”