Justice Department greenlights Paramount’s blockbuster takeover of Warner Bros.

If you thought Hollywood mergers had peaked, think again. It looks like Paramount Skydance is moving one giant step closer to swallowing up Warner Bros. Discovery, after the US Justice Department's Antitrust Division cleared their truly colossal $111 billion buyout. Don’t get too excited—or depressed—just yet, though. This isn’t a done deal and there’s likely more legal wrangling ahead, but for now, a major regulatory hurdle has been cleared.

Regulators Have Their Say

Here’s the bit that’s left some people gobsmacked: Paramount got the green light without being forced to break anything up, offload assets, or make any big promises about behaving in the future. The Justice Department basically said, after looking into it, that they don’t reckon this merger will be bad for competition, or jack up prices for your average American streaming telly addict.

In their official statement, the Antitrust Division went with:

Paramount Skydance, for their part, acted like model students and put out a grateful missive about the regulators’ “thorough review.” They’re pitching the deal as pro-competition—saying it’ll help them fight back against giant tech platforms, and that it’s all about giving audiences, creative talent, and the entertainment industry a fairer crack of the whip.

A Hollywood Behemoth in the Making

If this deal does go through, you’d be looking at a media Frankenstein stitched together out of some of the biggest brands in TV and film. Think CBS, CBS News, Paramount Pictures, Paramount+, HBO, HBO Max, Warner Bros. Pictures, CNN, TNT, TBS, HGTV, and the list goes on. Everything from James Corden to Batman to House of the Dragon, all under one enormous roof.

The Naysayers—and They’re Not Wrong to Worry

As you’d expect, not everyone’s rolling out the red carpet. Senator Elizabeth Warren is one of the louder voices, calling the DOJ’s move 'terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay.' In classic Warren style, she’s denounced the merger as reeking of corruption, urging state attorneys general to jump in and block it. No gentle language there.

Industry Pushback: A-List Edition

This isn’t just politicians. A serious chunk of Hollywood’s creative talent are properly rattled by the scope of this merger. A group of industry insiders have signed an open letter posted at Blockthemerger.com, accusing the dealmakers of caring more about a handful of mega-rich shareholders than the actual public. They warn about the damage to the industry's independence and diversity, and call for proper regulation to stop even more market consolidation.

• JJ Abrams
• Damon Lindelof
• David Fincher
• Denis Villeneuve
• Adam McKay
• Ben Stiller
• Bryan Cranston
• Catherine Keener
• David Chase
• Emma Thompson
• Don Cheadle
• James Schamus
• Jane Fonda
• Jason Bateman
• Lin-Manuel Miranda
• Noah Wyle
• Tiffany Haddish
• Mark Duplass
• Joaquin Phoenix
• Lily Gladstone
• …and more

In their open letter, these writers, directors, and stars argue that competition matters if you’re keen on having any kind of healthy film or telly industry—or democracy, for that matter. They say media mergers have already whittled away at Hollywood’s place in global culture, and this one could be a tipping point.