The US Department of Justice has approved Paramount Skydance's $111 billion (£82.8bn) acquisition of Warner Bros. Discovery.
In a statement on its decision, the justice department said it had completed its analysis of the proposed merger and determined that "the transaction is not likely to result in harm to competition or American consumers".
The justice department's anti-trust division said it conducted a "rigorous eight-month investigation" and suggested that the transaction would likely "increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers".
Warner Bros. put itself on the market last year and subsequently agreed to a $72bn (£54bn) deal with Netflix, under which the streaming giant would have acquired Warner Bros.' film and television studios.
The US Department of Justice has approved Paramount Skydance's acquisition of Warner Bros. Discovery
Paramount Skydance later launched a hostile bid for Warner Bros., challenging Netflix's buyout plan.
It said its proposed transaction for the entirety of Warner Bros. Discovery (WBD), including its Discovery Global segment, was a "clearly superior alternative".
The proposal was rebuffed by Warner Bros., but Paramount increased its bid and secured the deal.
US regulators back media merger
How the sale of Warner Bros. will impact the company's location-based entertainment (LBE) offering is uncertain at this point.
Warner Bros. licenses its name and characters to theme parks such as Warner Bros. World Abu Dhabi, and operates the Harry Potter studio tour attractions.
Warner Bros. brands also feature at Universal and Six Flags theme parks.
The merger is not yet complete and still faces UK approval, European reviews, FCC clearance, and potential state-level legal challenges.
Warner Bros. licenses its name and characters to theme parks such as Warner Bros. World Abu Dhabi
“These investigative efforts all led to the same conclusion: the film and television industry is highly dynamic, and the proposed transaction is not likely to harm competition or American consumers,” the justice department said.
In a statement, Paramount said: "This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment.
"We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators, and the entertainment industry as a whole."
