Paramount-Warner Brothers Merger Approved by US Justice Department

Paramount: Michael Buckner/Variety; Warner Bros.: AaronP/Bauer-Griffin/GC Images

What was seen as one of the biggest hurdles in the planned merger of Paramount Skydance and Warner Brothers Discovery is now cleared, for now.

In a June 12 statement, the United States' Justice Department has announced that, after extensive review and consideration, they will approve the merger between two of the most storied studios in the business, stating that they “determined based on the evidence received in its investigation that the transaction is not likely to result in harm to competition or American consumers.”

Despite the Justice Department's approval, it is important to note that California Attorney General Rob Bonta and his office have been conducting their own review of the merger, implying they might considering suing to block it, despite federal government approval. A decision of whether to sue or not to say is expected within the next few weeks, as international governments and organizations are still reviewing the merger themselves.

From the very beginning, there have been concerns regarding the merger, the potiential loss of jobs, and an overall reduced theatrical output. However, Paramount Skydance CEO David Ellison has reassured the masses in several interviews throughout the process that there would not be any reductions. In a March 2 call with members of Wall Street, Ellison stated that: "We have no intention to pull back on production. We obviously intend to make 30 movies a year, basically 15 films from Paramount, 15 films from Warner Bros."

With the approval from the Justice Department standing for now, attention shifts to the regulatory reviews being conducted by the European Union and the United Kingdom as one of the final steps for this merger to go through, which would conclude one of the biggest entertainment studio mergers of the 21st century.