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Paramount Nears US Approval for Warner Bros. Discovery Deal

By  |  May 27, 2026
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U.S. antitrust regulators appear prepared to approve Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery following a lengthy meeting with company executives, according to Semafor, which cited people familiar with the discussions.

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    The report said Justice Department officials met with Paramount executives for roughly two hours, during which Paramount CEO David Ellison emphasized the company’s commitment to continuing theatrical movie releases. According to Reuters, the report also indicated that Justice Department staff attorneys appeared receptive to arguments from Paramount leadership that the merger would not negatively affect rival studios or creative professionals.

    Reuters reported that it could not independently verify the Semafor report. The Department of Justice, Paramount and Warner Bros. Discovery did not immediately respond to requests for comment outside normal business hours, according to Reuters.

    The proposed merger has become one of the most closely watched deals in both Hollywood and on Wall Street because it would unite several major entertainment franchises under one company. At the same time, critics have warned the transaction could lead to layoffs across the film and television industries.

    Read more: Paramount Builds High-Profile Legal Defense Team for Warner Bros. Discovery Merger

    Per Reuters, the Justice Department launched a deeper review of the deal earlier this year and issued subpoenas in March seeking details about how the acquisition might affect studio production levels, streaming competition, content licensing rights and movie theater operators.

    The merger has also faced resistance from prominent figures in the entertainment industry. Reuters reported that actors and filmmakers including Jane Fonda, J.J. Abrams and Mark Ruffalo joined nearly 3,500 signatories on a public letter opposing the deal. The letter argued that the merger could reduce opportunities for creators, eliminate jobs and increase costs for consumers.

    Paramount has aggressively pursued the transaction after outmaneuvering Netflix in the bidding process, according to Reuters. The company has also sought to reassure investors about the pace of the acquisition by promising Warner Bros. shareholders a quarterly “ticking fee” of 25 cents per share beginning in October if the deal remains unfinished by that time.

    Source: Reuters