Paramount Skydance has cleared a major hurdle in its bid to acquire AEW parent company Warner Bros. Discovery, as the U.S. Department of Justice's Antitrust Division has approved the proposed $111 billion merger.

According to Politico, regulators determined the deal can move forward without requiring asset sales, concessions, or behavioral restrictions. Officials reportedly concluded that the merger would not harm competition or negatively impact consumers.

The decision comes despite opposition from more than 5,500 individuals who signed an open letter urging regulators to block the transaction. Critics argued the merger could reduce competition across the entertainment industry, lead to job losses, and drive up costs for consumers. Variety noted that several high profile figures, including Robert De Niro, Edward Norton, and Ben Stiller, were among those who supported the letter.

While the federal approval marks a significant victory for Paramount Skydance, the process is not yet complete. The merger remains under review by the California Department of Justice, and state attorneys general still have the option to challenge the deal in court.

For AEW, the long term impact remains uncertain. Any major changes are unlikely to become clear until the merger is finalized and the promotion's current media rights agreement with Warner Bros. Discovery nears its expiration in December 2027, or December 2028 if an extension option is exercised.

However, reports indicate AEW President Tony Khan is optimistic about the company's future under a combined Paramount and Warner Bros. Discovery structure. Earlier reports also suggested Khan viewed Paramount as the preferred outcome in the battle for WBD, especially compared to Netflix, whose growing relationship with WWE raised concerns about what that could mean for AEW's position moving forward.