'This Fight Isn't Over': Opponents Turn to State AGs After DOJ Approves Paramount-Warner Merger

The US Department of Justice on Friday approved Paramount Skydance Corporation's megamerger with Warner Bros. Discovery, prompting opponents of the $110 billion deal to place their hopes of blocking it in the hands of Democratic state attorneys general.

The DOJ's Antitrust Division approved the merger without requiring divestitures or behavioral remedies—a significant win for billionaire Paramount CEO David Ellison. Analysts and critics had suggested the DOJ might require sales of some of the corporation's numerous cable networks, streaming services, film and television studios, sports programming rights, or media outlets.

The DOJ also reportedly declined to impose conduct restrictions on bundling, distribution, licensing commitments, and other areas.

“If we had an uncorrupted Department of Justice, Paramount would not even have tried to merge with Warner Bros. Discovery, in plain violation of the law," Robert Weissman, co-president of the consumer advocacy group Public Citizen, said in response to the news of the DOJ approval. "If it had, a Department of Justice that was doing its job would have rushed to court to block the merger the moment it was announced."

“Now, however, a compromised DOJ has rubber-stamped a merger that consolidates power for the Ellisons, one of [President Donald]Trump’s preferred oligarch families," Weissman added. “This merger will jack up prices for consumers, cost workers their jobs and, most importantly, limit the range of viewpoints permitted to air on the major media or appear in movies and creative outlets. Put simply, this is an anti-free speech merger."

Craig Aaron, co-CEO of the advocacy group Free Press, said in a statement: “Despite all the talk about conducting a thorough investigation, the fix was in at the Trump Justice Department from the start. Paramount Skydance has fêted, flattered, and promised sweeping changes to news coverage to win the administration’s approval, despite evidence that giving one corporation this much media power—all the movie studios, cable channels, and newsrooms—will undermine competition, destroy jobs, slant the news, and endanger our democracy."

“We've already seen how far Paramount and the Ellison family are willing to go to diminish a once-proud network and news organization like CBS, and they promise to do worse if they get their hands on Warner Bros., HBO, CNN, and all the rest," he added. "The Ellisons aren’t hiding their intentions, and no weak concessions will make this deal any better."

Congressman Jamie Raskin of Maryland, the top Democrat on the House Judiciary Committee, warned earlier this week that approval of the merger would result in "the same kind of unprecedented pro-MAGA editorial control we have seen at CBS News and '60 Minutes.'"

Raskin also contended that the merger could mean that "American consumers, who already pay an average $69 a month for streaming on top of $100 a month for cable and $78 for internet," will pay "even more for sports, news, and entertainment."

As Politico's Yasmin Khorram reported Friday:

The [DOJ] decision... paves the way for Paramount to combine with the entertainment and media company behind a vast film and television studio, CNN, and the HBO Max streaming service, which would be combined with Paramount+ to create a new offering boasting about 200 million subscribers. The deal, which would upend the Hollywood ecosystem by combining two historic rival studios, is opposed by many in the entertainment industry who fear it could lead to mass layoffs, among other concerns.

The DOJ's reported approval of the merger does not necessarily mean the deal is done. Several states are weighing antitrust challenges, most notably California, where the office of Democratic Attorney General Rob Bonta is conducting what he called a "vigorous" review of the proposed merger to determine how it would impact competition in entertainment, streaming, advertising, and labor markets. Reuters reported earlier this month that California, New York, and other states are preparing a lawsuit aimed at blocking the merger.

“The good news is, this is not the last word on the matter," Weissman said. "Competition authorities in the states and other countries can still follow the law and stand up for the public interest against this media consolidation. Now that the federal government has abandoned antitrust enforcement in favor of cronyism and runaway consolidation, state attorneys general must step in to block this deal."

Aaron said that states "have strong case for blocking this merger, and many brave journalists, filmmakers, and workers in the entertainment industry have spoken out against the dangers of this deal despite threats to their livelihoods."

"They are warning us what will happen if this deal goes through, and we must listen," he added. "The attorney generals have the evidence they need to stop this deal; now the public needs them to take action.”

Last year's merger between Paramount Global, Skydance Media, and National Amusements was itself opposed by critics who sounded similar alarms over corruption, antitrust issues, labor concerns, and attacks on editorial independence.

CBS, a Paramount Global company, announced the cancellation of "The Late Show with Stephen Colbert" during the merger review period. While Paramount claimed the cancellation was a financial decision, critics said its timing suggested at least indirect political pressure, given Colbert's vocal criticism of Trump and the need for merger approval from the Federal Communications Commission. FCC Chair Brendan Carr was appointed by Trump and has been dogged by allegations that he's more loyal to the president's agenda than to his agency's stated mission.

One of the biggest recurring flashpoints involves claims of corporate pressure and censorship at CBS' venerable "60 Minutes" weekly current affairs program. Numerous former "60 Minutes" journalists and others have accused Bari Weiss—the right-wing podcaster who became CBS News editor-in-chief after the merger—of political censorship.

Earlier this month, a coalition of press freedom groups warned that recent firings of "60 Minutes" journalists were a “grotesque effort taken straight from an authoritarian handbook” that posed a much wider threat to democracy, and highlighted that an approved Paramount Skydance-Warner Bros. Discovery merger would hand control of CNN, a Warner Bros. company, to the same billionaire family that now owns CBS.

The coalition argued that the merger “would open the door to improper political meddling in journalists’ editorial decisions" and "alter CNN’s editorial direction (not to mention meddle with HBO’s documentaries) to be more friendly to the [Trump] administration, threatening press freedom."