US antitrust regulators appear prepared to approve Paramount's (PSKY) proposed $110 billion takeover of Warner Bros. Discovery (WBD) after a two-hour meeting Tuesday at the Department of Justice, Semafor reported Tuesday, citing unnamed people familiar with the matter.

According to the report, Paramount Chief Executive David Ellison told officials the combined company would continue releasing movies in theaters, addressing concerns that the merger could shift more films to streaming platforms.

Justice Department staff attorneys were receptive to Paramount's argument that the deal would not harm competition, rival studios or creative talent, though discussions remain ongoing and the agency's review could still change, according to the report.

The DOJ, Paramount and Warner Bros. did not immediately respond to requests for comment outside regular business hours.

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