The federal government has given the green light to a massive media deal that reshapes the entertainment industry, with regulators approving Paramount Skydance’s $111 billion acquisition of Warner Bros. Discovery, according to reports. The decision landed on Friday and moves the transaction into its next regulatory phase.

Antitrust officials did not impose divestitures or behavioral conditions on the merger, Politico reported, meaning the companies were not required to sell off assets or accept operating restrictions as part of the deal. According to the outlet, Paramount Skydance CEO David Ellison met with Justice Department antitrust officials for a two-hour session during the review process. That meeting took place roughly three weeks before approval was finalized.

Ellison’s father, Oracle co-founder Larry Ellison, has maintained close ties to President Donald Trump, a connection that has drawn attention as federal agencies weigh major corporate consolidations. The merger brings together a wide portfolio of entertainment assets under a single corporate structure, including Paramount, Warner Bros. Pictures, CNN, and the HBO Max streaming platform. The combined entity is expected to be a major competitor in the global streaming and content market.

Paramount has argued that the deal is necessary to compete with large technology companies that dominate streaming distribution. Company executives also estimate the merger could generate around $6 billion in cost savings by eliminating overlapping operations across the two firms.

Those projected efficiencies have been met with skepticism in parts of the industry. Labor groups and Hollywood unions have raised concerns that consolidation on this scale could result in job cuts, even as Paramount has said workforce reductions would be limited.

Entertainment workers have also expressed concern about the broader impact on production opportunities and creative control, warning that fewer large studios could mean fewer pathways for filmmakers and crews.

The transaction is not yet fully complete. Regulatory approval is still required from authorities in the European Union and the United Kingdom, both of which represent key markets for the combined company.

Legal challenges could also still emerge in the United States. Reports indicate that states, including New York and California, are preparing potential lawsuits to block or slow the merger, according to Reuters.

Paramount outmaneuvered a competing bid from Netflix for Warner Bros. Discovery. Paramount executives at the time accused Netflix of running an aggressive lobbying campaign against the deal, an allegation Netflix has denied.