The U.S. Department of Justice has signed off on Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, a person familiar with the matter told CNBC Friday.

It’s an important milestone for the roughly $110 billion deal that’s drawn criticism over antitrust concerns, though it could still face legal challenges from state attorneys general. California AG Rob Bonta has been among the officials reviewing the proposal, according to prior reports. 

The DOJ is expected to announce the approval soon, according to the person familiar, who spoke on the condition of anonymity before the information was public. Paramount didn’t immediately respond to request for comment Friday. Politico first reported the government approval. 

Paramount’s stock was up about 4% in after hours trading.

Paramount CEO David Ellison told investors during the company’s April earnings call that the deal was on track to close by September, after which point a so-called “ticking fee” kicks in, making the deal more expensive. The proposed merger has already received WBD shareholder approval. 

In late February, Paramount offered $31 per share to acquire all of WBD’s assets, which includes cable TV networks like CNN and TBS, the Warner Bros. film studio and streaming platform HBO Max. The proposal came following multiple offers and upended a deal with Netflix for that company to acquire WBD’s streaming and film assets.

Paramount is still awaiting regulatory approval from European officials. Earlier this week the European Union’s regulator arm began reviewing the proposed deal and set a July 14 deadline for vetting, according to a notice on its website.

On Wednesday Paramount said in a regulatory filing that the deal received approval from the Australian Competition and Consumer Commission.