The Department of Justice has closed its investigation into Paramount’s proposed acquisition of Warner Bros. Discovery, ending the review before career attorneys who had expressed concerns about the deal could formally challenge it. According to sources familiar with the matter, a team of career Justice Department lawyers had been examining the transaction for several months and was reportedly inclined to recommend filing a lawsuit on antitrust grounds, arguing that the merger of the two major film studios could reduce competition in the entertainment industry.

Senior officials within the department decided to end the inquiry following a detailed two-hour interview last month with Paramount CEO David Ellison, the son of Larry Ellison, a known ally of former President Donald Trump. Department leadership found Ellison’s explanations and responses compelling enough to address many of the staff’s competition-related questions.

A spokesperson for the Justice Department emphasized that the Antitrust Division carried out a comprehensive review of the acquisition. However, the decision to close the investigation before a potential legal challenge raised questions about the internal dynamics between political appointees and career prosecutors within the agency.

The deal, which would combine two significant players in the entertainment sector, has drawn scrutiny over concerns that such consolidation might limit consumer choice and lead to higher prices or reduced innovation. By terminating the investigation without pursuing antitrust litigation, the Justice Department cleared a major regulatory hurdle for Paramount’s acquisition of Warner Bros. Discovery.

The move reflects a broader trend in regulatory oversight of large media mergers, where political leadership may weigh heavily on the final judgments in complex antitrust matters, occasionally diverging from the views of career experts accustomed to rigorous legal scrutiny.