Hollywood Power Shift
Justice Department Approves Paramount Skydance's $110 Billion Warner Bros. Discovery Acquisition
The U.S. Justice Department has cleared Paramount Skydance's $110.9 billion takeover of Warner Bros. Discovery, according to NBC News, citing a source familiar with the matter. The DOJ's antitrust division concluded the deal
The approval marks a pivotal moment in one of Hollywood's most contested bidding wars. Paramount Skydance beat out Netflix — which had its own $82.7 billion deal for WBD's assets — after launching a rival all-cash offer in December 2025. Shareholders voted overwhelmingly to approve the $31-per-share deal in April 2026, according to MarketScreener.
A Bidding War That Reshaped Hollywood in Months
Warner Bros. Discovery put itself up for auction in October 2025, struggling under massive debt and a falling stock price. Netflix moved first, signing an $82.7 billion agreement in December 2025 to buy WBD's studio and streaming assets. But Paramount Skydance launched a hostile all-cash counterbid just days later, kicking off a months-long fight for control of one of Hollywood's oldest studios.
To break the Netflix deal, Paramount Skydance paid a $2.8 billion breakup fee. WBD then re-entered talks with Paramount in February 2026, signing a final agreement worth $110.9 billion. CEO David Ellison — son of Oracle co-founder Larry Ellison, who put up a $40 billion personal guarantee to back the bid — drove the deal from the start.
DOJ Clears Deal With No Conditions or Required Selloffs
The Justice Department approved the merger without requiring any divestitures or behavioral conditions. Officials concluded the deal does not threaten competition, according to NBC News. David Ellison reportedly met directly with DOJ officials, pledging to release at least 30 theatrical films per year to ease concerns about reduced movie output.
Not everyone agrees. Senator Elizabeth Warren called the merger an
$24 Billion in Middle Eastern Money Draws European Scrutiny
The deal's foreign financing is now under review in Europe. Three Middle Eastern sovereign wealth funds are backing $24 billion of the deal. Saudi Arabia's Public Investment Fund holds 15.1% non-voting equity. Abu Dhabi's L'imad Holding holds 12.8%. Qatar's Investment Authority holds 10.6%. Voting control stays with the Ellison family and RedBird Capital.
The European Commission has opened a probe under its Foreign Subsidies Regulation — a rule designed to check whether state-backed money distorts fair competition. The UK's Competition and Markets Authority launched its own Phase 1 investigation on June 9. Both bodies face deadlines in July and August to decide whether to block or clear the deal, according to MarketScreener.
Job Cuts Loom as Studios Merge and States Push Back
The combined company projects $6 billion in cost savings. Industry experts warn those savings will come largely from layoffs as overlapping divisions merge. Over 1,000 Hollywood professionals — including Mark Ruffalo, Ben Stiller, and Joaquin Phoenix — signed an open letter warning that the deal would
California Attorney General Rob Bonta is leading a coalition of state attorneys general threatening to sue, citing risks to wages and middle-class production jobs. Outgoing WBD CEO David Zaslav, meanwhile, is set to receive a payout estimated between $550 million and $887 million. The merger reduces the number of major American film studios from five to four, according to MarketScreener.
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