Warner Bros $111bn sale to Paramount approved by US justice department

Paramount Skydance's $111bn (£82.8bn) acquisition of Warner Bros Discovery has been approved by the US Department of Justice.

The approval marks a key development in the merger that will reshape media, allowing the takeover bid of the Hollywood studio, which owns CNN and HBO, to continue.

The pending sale has been filled with contention, from Paramount's battle with Netflix over the company to scrutiny over industry consolidation and worries about politics. David Ellison, the leader of Paramount, is the son of Larry Ellison, a major donor to President Donald Trump.

But it's not a done deal yet, as states like California are reviewing the sale and could sue to block it.

In a statement on its decision, the justice department said it had conducted a "rigorous" investigation of the proposed deal and found it was "not likely to result in harm to competition or American consumers."

Instead, the department said it found the deal would likely "increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers."

Rob Bonta, California's Attorney General, said in late February that he was concerned any takeover of Warner Bros would further consolidate and limit competition in the entertainment industry, which has seen layoffs and cuts in recent years.

Earlier this month, Bonta said he would soon decide on taking formal legal action to block the merger.