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DOJ Clears Paramount-Warner Merger Despite Staff Concerns

Wall Street Journal US Business •
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Senior leadership at the Justice Department abruptly ended an investigation into Paramount's bid for Warner Bros. Discovery. This decision bypassed career antitrust lawyers who spent months analyzing the merger. These investigators leaned toward recommending a lawsuit to block the deal, fearing the combination of two major movie studios would violate antitrust laws.

Staffers had not yet submitted their final recommendations when they received notice on Friday that the federal review was over. This move effectively clears the path for the acquisition. Department leaders decided the deal was acceptable after a two-hour interview with CEO David Ellison, who addressed the staff's concerns regarding market competition.

This internal rift reveals a disconnect between career investigators and political leadership. The decision allows the merger to proceed without a federal legal challenge, which usually stalls such large-scale media consolidations. The deal moves forward because leadership found the arguments presented by the son of Larry Ellison persuasive enough to override antitrust concerns.