The U.S. Department of Justice (DOJ) abruptly ended its antitrust review of Paramount’s proposed purchase of Warner Bros. Discovery before staff attorneys could present their findings or recommend legal action to block the deal. Sources familiar with the process revealed that career antitrust lawyers were still weeks away from issuing a formal recommendation, which was reportedly leaning toward filing a lawsuit over competitive concerns.
Instead, senior DOJ officials took control, concluding the investigation and publicly endorsing the merger. Their statement portrayed the deal as a boost to competition, especially in the growing streaming market, and claimed it would not negatively affect the already crowded studio landscape. This swift clearance raised questions among some DOJ staffers, who believe the administration prioritized political considerations over the career attorneys’ cautious approach.
The decision followed a lengthy interview between Paramount’s CEO David Ellison and top DOJ leaders, during which concerns about the combined company’s substantial debt load and ambitious goal to release 30 theatrical films annually were apparently downplayed. Though career lawyers did not explicitly push for a lawsuit in their internal discussions, some now view the official positive framing of the merger as a strategic move to hinder legal challenges from state regulators.
This case is among several where antitrust staffers say they felt sidelined under the current administration, including a notable monopoly investigation of Live Nation. That case was ultimately pursued and won by state authorities after the DOJ settled out of court. Meanwhile, the Paramount-Warner merger continues to face scrutiny from European regulators.