The US Justice Department has cleared the way for Paramount Pictures to acquire Warner Bros in what is being described as the biggest deal in Hollywood. | Hollywood

The mega-merger is "unlikely to have the effect of substantially lessening competition in relation to the wholesale supply of films for theatrical release in Australia."

Paramount Skydance defeated Netflix in the battle to acquire Warner Bros. Discovery, committing $111 billion for the merger.

A coalition of state attorneys general led by California is preparing a lawsuit to challenge the merger.