DOJ Clears Antitrust Review for Paramount Skydance’s Proposed WBD Takeover

Paramount Skydance’s proposed acquisition of Warner Bros. Discovery (WBD) has cleared the antitrust review by the U.S. Justice Department (DOJ). However, the acquisition is not finalized, as ongoing negotiations and agreements are still needed.

Details of the Antitrust Review

The DOJ’s antitrust review involved a certification of compliance with the Hart-Scott-Rodino Antitrust Improvements Act. This process concluded when the 10-day statutory waiting period expired on February 19, 2026, at 11:59 p.m. Eastern Time. Paramount Skydance indicated that this expiration implies no statutory barriers exist to finalize the acquisition.

Response from Netflix

Netflix has responded critically to Paramount’s announcement. David Hyman, Netflix’s chief legal officer, stated that the expiration of the waiting period does not equate to regulatory approval for Paramount’s potential takeover of WBD. He emphasized that routine milestones do not indicate a completed approval process.

Outstanding Conditions for the Acquisition

• Paramount Skydance currently lacks a definitive merger agreement with WBD.
• The acquisition requires shareholder approval.
• Additional regulatory clearances in relevant jurisdictions are necessary.

Political Oversight and Senatorial Concerns

A group of eight U.S. Democratic senators, led by Senator Cory Booker (D-N.J.), has expressed concerns regarding potential political interference in the acquisition process. They have requested Paramount to maintain all records related to its acquisition efforts and communications with the Trump administration.

WBD’s Position and Existing Agreements

WBD currently has a binding agreement worth $83 billion with Netflix for the sale of its studios and HBO Max. A shareholder meeting is scheduled for March 20, 2026, to vote on this Netflix deal. WBD has previously rejected offers from Paramount since negotiations began last September.

Negotiation Window and Future Outlook

WBD, with Netflix’s approval, has opened a seven-day negotiation window for Paramount to clarify its best and final offer. This window closes on February 23, 2026. Following this, WBD plans to hold its Q4 earnings call on February 26, 2026. Should Paramount present a higher bid, Netflix has four days to counter it.

For now, Warner Bros. Discovery remains committed to the Netflix agreement and is urging shareholders to support the pact during the upcoming meeting.