The US Justice Department has cleared Paramount Skydance Corp.’s proposed $110 billion acquisition of Warner Bros. Discovery Inc., concluding that the deal is unlikely to harm competition or consumers in the film and television industry.

The federal antitrust agency announced Friday that it would not require any changes to the transaction after reviewing the merger for about eight months. According to the DOJ, the investigation found no significant threat to competition despite the scale of the deal, which would combine two of Hollywood’s biggest studios.

“These investigative efforts all led to the same conclusion: the film and television industry is highly dynamic, and the proposed transaction is not likely to harm competition or American consumers,” DOJ said in the statement.

Paramount executives had argued that the merger would strengthen the company’s ability to compete with major streaming platforms such as Netflix, Prime Video and YouTube. The combined business would bring together Warner Bros. and Paramount studios, news networks CNN and CBS, streaming services HBO and Paramount+, as well as numerous cable channels.

Reacting to the decision, Paramount said: “This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment. We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators, and the entertainment industry as a whole.”

Despite the federal approval, the acquisition still faces opposition from a coalition of state attorneys general and critics in Hollywood who argue the merger could reduce jobs and limit creative opportunities.

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