The US Department of Justice has officially cleared Paramount Skydance’s acquisition of Warner Bros. Discovery, removing the most significant regulatory obstacle to the entertainment industry's largest-ever consolidation.
Valued at approximately $110.9 billion in enterprise value, the deal translates to $31 per share in cash for Warner Bros. Discovery equity holders, plus assumed debt. This approval follows a competitive bidding process that began in September 2025, with Netflix also submitting a competing proposal before shareholders overwhelmingly approved the merger on April 23.
Paramount Skydance, trading under ticker PSKY on Nasdaq, is led by CEO David Ellison. Warner Bros. Discovery, listed as WBD, is helmed by David Zaslav.
The financing structure includes a substantial $15 billion leveraged loan tranche, signaling strong institutional appetite for the combined company’s future cash flows. However, risks remain. If streaming subscriber growth stalls or advertising revenue contracts, this debt load could significantly impact the balance sheet.
While the DOJ clearance marks a major milestone, the deal is not yet final. European regulators and other international review bodies are still examining the transaction. Conditions imposed by EU authorities could force divestitures of certain regional assets or alter content licensing arrangements, directly affecting the scope of the merger's international operations.