The U.S. Justice Department has completed its investigation into Paramount Skydance’s acquisition of Warner Bros. Discovery. The findings revealed that the merger is unlikely to undermine competition in the industry or adversely affect consumers. Officials announced on Friday that the probe has concluded, with the antitrust division stating the merger will enhance competition within the media and entertainment sector, benefiting American consumers and workers.

Paramount Skydance, led by David Ellison, struck a deal to purchase Warner Bros. Discovery in late February. This deal follows months of negotiations and a rival bid by Netflix that did not succeed. Paramount was acquired by Skydance last year. The companies argue that the merger will foster industry growth and provide consumers with more content, especially if the HBO Max and Paramount+ libraries are merged. Critics, however, express concerns about further consolidation in an industry dominated by a few major players.

Regulators evaluated the potential impacts on the video streaming market. Their conclusion indicated the merger would likely boost competition by offering consumers a more competitive alternative to major streaming services. The agency also noted that platforms like YouTube and TikTok, while offering streaming content, are not direct competitors under antitrust legal standards.

Additionally, regulators determined that the merger is unlikely to reduce competition for traditional television due to strong competition in live programming. In terms of the film industry, combining the two major film studios is not expected to harm studio development, production, or film distribution. Evidence points to significant competition, which has increased film production and diversity, a trend expected to continue.

Despite opposition from industry professionals and lawmakers, who fear job losses and reduced options for filmmakers and audiences, Ellison has promised to maintain Paramount and Warner Bros. as separate movie studios, committing to release 30 movies annually. Paramount acknowledged that the merger would involve considerable cost reductions due to overlapping operations.

Although the U.S. Justice Department under Trump’s administration will not contest Paramount’s $81 billion acquisition of Warner, the merger still awaits approval from other regulators in the U.S. and abroad. California Attorney General Rob Bonta, who is critical of the acquisition, is conducting his own review. European regulators, including the European Commission and the U.K.’s Competition and Markets Authority, are also examining the deal, with decisions expected in the coming months.

The merger is slated for completion in the third quarter of this year. Paramount has ensured shareholders will receive compensation if the acquisition is delayed past September 30, in the form of a 25-cent per share fee for each subsequent quarter. Additionally, a $7 billion regulatory termination fee has been set.