Paramount Global appears to be gaining ground in its effort to acquire Warner Bros. Discovery for $110 billion, as U.S. Department of Justice antitrust staff show signs of support following a critical two-hour meeting. Paramount CEO David Ellison emphasized the company’s commitment to theatrical film releases, a key concern for Hollywood talent and regulators wary of streaming-driven consolidation. The DOJ staff, nonpolitical attorneys who have previously diverged from Trump-era leadership on merger policy, were reportedly persuaded by Paramount’s argument that the combined entity would not harm competition or creative output.

The discussion centered on lessons from Disney’s 2019 acquisition of 21st Century Fox, after which fewer films reached theaters, favoring Disney+ instead. Paramount countered that pandemic disruptions skewed release patterns and that a return to balanced distribution is feasible. Acting antitrust chief Omeed Assefi participated in the talks, underscoring the review’s significance.

While no final decision has been made, the shift in DOJ staff sentiment marks a pivotal moment for the proposed merger. California’s attorney general retains authority to challenge the deal, and broader concerns about media concentration and creative control remain unresolved. The outcome could redefine studio power dynamics in an era of streaming dominance.