LOS ANGELES, United States (AFP) — The United States (US) Justice Department has approved Paramount Skydance’s $111 billion deal to buy Warner Bros. Discovery, US media reported Friday.

The department signed off without demanding any asset sales or other concessions, concluding the deal did not threaten competition, Politico and Bloomberg reported.

The Justice Department did not immediately respond to requests for comment, but was expected to make an announcement on Friday, the reports said.

The merger combines Paramount with the company behind CNN, Warner Bros. Pictures and HBO Max.

Paramount chief executive David Ellison met at least twice with antitrust officials to make the case that the deal would strengthen competition against bigger streaming and tech rivals, Politico reported.

The federal approval does not end the deal’s legal risks.

A group of about 10 states led by California is preparing an antitrust lawsuit that could be filed this month, Bloomberg has reported.

California Attorney General Rob Bonta’s office said this week the acquisition “remains an active investigation.”

The European Commission is also reviewing the merger.

A bidding war for Warner Bros. and its valuable back catalogue erupted last year between streaming giant Netflix and Paramount.

A wary Tinseltown reluctantly coalesced around the Netflix bid, seeing it as the lesser of two evils, but Paramount’s willingness to stump up ever greater sums eventually saw the streamer withdraw.

Ellison’s father, Oracle co-founder and Trump ally Larry Ellison — one of the world’s richest men — largely financed the takeover, offering a financial guarantee that finally persuaded the Warner Bros. board to accept Paramount’s offer.

Still, hundreds of actors and directors have signed a letter opposing the merger, arguing it will crimp production in an already struggling industry.