Paramount ( PSKY ) stock jumps 3% after DOJ clears Warner Bros. deal With a value of $110 billion

TLDR

• The US Department of Justice has approved Paramount Skydance’s acquisition of Warner Bros. Discovery for $110 billion.
• The Justice Department found that the deal would increase competition, would not harm it, and did not raise any antitrust concerns
• PSKY stock closed at $10.47 on Friday, then jumped 2.77% to $10.76 in after-hours trading.
• The merger is still subject to review by the California Attorney General and European regulators, with an EU deadline set for July 14.
• The Australian Competition Regulatory Authority has already signed off on the deal

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Paramount Skydance has cleared one of its biggest hurdles in the race to acquire Warner Bros. Studios. Discovery. The US Department of Justice said on Friday that it had completed its review and found no reason to block the $110 billion deal.

PSKY stock closed at $10.47 on Friday, down slightly on the day, before jumping 2.77% to $10.76 in after-hours trading after the Justice Department’s announcement.

Paramount Skydance Corporation Class B common stock, PSKY

The Justice Department said the deal was “unlikely to harm competition or American consumers.” She went further, saying that the merger would likely increase competition across media and entertainment.

Paramount He welcomed the decision. A spokesman described the deal as “pro-competitive,” arguing that it would create a stronger company better positioned to take on the big tech platforms.

The company said it wanted to complete the deal “as quickly as possible.”

It hasn’t been done yet

The deal still has some way to go. California Attorney General Rob Bonta confirmed that the deal is still under review by the California Department of Justice. Bonta had previously reported concerns about further consolidation in the entertainment industry.

He said earlier this month that he would decide soon whether to take formal legal action. As of Friday, a company spokesperson said the review “remains under investigation.”

European regulators are also in the picture. They have set a deadline of July 14 for their initial evaluation. However, the Australian regulatory body has already approved the deal.

More than 1,400 Hollywood actors, directors and filmmakers signed a letter opposing the merger in April, citing fears of job losses and reduced opportunities for creatives.

What the deal brings together

If completed, the combined company will be one of the largest media groups in the world.

Paramount will add CNN, HBO, TBS, TNT, TCM, DC Studios and New Line Cinema to a portfolio that already includes Paramount Pictures, CBS, Showtime and Nickelodeon.

Skydance merged with Paramount in 2025 and cut nearly 10% of its workforce in the process.

Warner Bros. It originally struck a deal with Netflix for about $82 billion. Paramount made a competing offer, which Warner Bros. rejected. in the beginning.

Paramount raised its offer to a level that Netflix said was “no longer financially attractive” to meet. Warner Bros. agreed. Ultimately on Paramount’s suggestion.

Paramount executives cited billions in expected cost savings as a primary reason for the deal.

The green light from the Department of Justice brings the deal closer to completion, with the remaining regulatory gates in California and Europe cleared.