Feds Wave Through Merger; California Loads Lawsuit

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The Trump administration’s Justice Department just greenlit a massive $110 billion media merger — but California’s attorney general is already gearing up to fight it in court.

Story Snapshot

The Department of Justice cleared Paramount Skydance’s purchase of Warner Bros. Discovery after an eight-month review of more than two million documents.
Federal regulators said the deal is not likely to hurt competition and could actually help consumers by creating a stronger rival to Netflix, Amazon, and Disney.
The approval came with no conditions — Paramount does not have to sell off any assets.
California Attorney General Rob Bonta is pushing back and may sue to block the deal despite the federal green light.

Federal Regulators Give the Deal a Clean Pass

The Justice Department’s Antitrust Division cleared Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery on June 12, 2026. The agency said the deal is “not likely to harm competition or American consumers.” The approval came with no strings attached — no asset sales, no conditions, and no required changes to the deal’s structure. That is a strong signal that federal regulators found no serious threat to the marketplace after a thorough review.

The Antitrust Division reviewed more than two million documents over eight months before reaching its conclusion. ^[5] Regulators said the merged company would create “a stronger alternative to larger streaming services” by combining Paramount+ and HBO Max. ^[2] The DOJ framed the deal as a boost to competition against giants like Netflix, Amazon, and Disney — not a threat to it. The agency said the transaction would have clear “benefits for American consumers and workers.”

What the Merged Company Would Look Like

The combined company would bring together some of the biggest names in entertainment. Paramount owns CBS, Paramount+, and major film studios. Warner Bros. Discovery controls HBO, CNN, HBO Max, and a large library of movies and TV shows. Together, the new entity would be one of the largest media companies in the world. The DOJ said it reviewed the deal’s effects on streaming, linear television, and theatrical film distribution before signing off. ^[4]

Federal regulators also noted that the deal came out of a competitive bidding process. Netflix reportedly made its own offer for Paramount before Skydance’s bid won out. ^[8] That competitive dynamic likely helped the DOJ conclude that the market was already working — and that the merger would not tip the scales too far in any one direction. The result is a deal that the federal government believes strengthens, rather than weakens, the media landscape for everyday Americans.

California’s AG Refuses to Accept the Federal Ruling

Despite the federal approval, California Attorney General Rob Bonta is not backing down. Reports indicate he and other state attorneys general are preparing a legal challenge to block the merger. State-level antitrust suits can still move forward even after the Justice Department clears a deal. That means this fight is far from over, and the final outcome could end up in the hands of a judge rather than a regulator.

This kind of state-level resistance fits a familiar pattern. Left-leaning state officials often use the courts to block or delay outcomes they dislike — even when federal agencies with full investigative authority have already ruled. The Justice Department spent eight months and reviewed over two million documents to reach its conclusion. ^[5] For a state AG to second-guess that process looks less like a legal argument and more like political interference. Conservative voters who have watched California meddle in federal policy for years will recognize this playbook immediately.