UK allows Paramount Skydance-Warner Bros. merger to go through
The United Kingdom approved Paramount Skydance’s acquisition of Warner Bros. Finding, clearing a meaningful regulatory hurdle for their $111 billion merger. The UK’s Competition and Markets Authority examined the deal and persistent that it would not substantially reduce competition, noting continued rivalry from major studios like Universal, Disney, and Sony. Despite federal approval in the U.S., the merger faces legal challenges from California and other states, alleging violations of antitrust laws. Paramount has publicly defended the deal,stating the UK’s findings contradict those accusations. Additionally,UK officials,including Lisa Nandy,declined to intervene in the merger,provided Paramount with certain commitments,such as maintaining independent news and children’s networks and not combining linear channels with streaming services in the UK. Meanwhile, the deal remains under scrutiny elsewhere, with legal delays and opposition from some stakeholders concerned about potential job cuts and market concentration. The merger is notable as it aligns with international approvals, including those from the European Union, despite opposition from UK actors and critics.
The United Kingdom gave the green light to Paramount Skydance’s acquisition of Warner Bros. Discovery on Wednesday, clearing a major regulatory hurdle for the $111 billion merger.
The U.K.’s Competition and Markets Authority approved the deal following its Phase 1 investigation. The British regulator’s decision means the antitrust matter won’t be investigated further.
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The CMA concluded that the merger does not substantially lessen competition in the U.K., noting the combined entity would continue to face competition from Universal, Disney, Sony, and “a range of other smaller studios” in the theatrical film market.
The body’s findings “directly refute the assumptions that underpin the US state AGs’ complaint seeking to block the transaction, despite federal approval,” Paramount said in a statement.
Last month, California and 11 other states filed a lawsuit seeking to block the merger on the basis that it violates federal antitrust law. The suit was brought despite the Justice Department’s approval of the deal in June.
In the United States, Paramount is heading to trial in March after it agreed to delay the Warner Bros. merger until June 1, 2027. Initially, Paramount Skydance was going to close the deal by Sept. 30.
In its regulatory decision, the CMA also concluded the merger faces sufficient competition in the subscription-video-on-demand market. Competitors to the streaming services owned by Paramount Skydance and Warner Bros. provide enough market pressure, according to the CMA.
“These conclusions further demonstrate the misguided and gerrymandered market definitions relied upon by the US state AGs in their antitrust complaint in California,” Paramount said in the statement.
Separately, Lisa Nandy, U.K. secretary of state for digital, culture, media, and sport, declined to intervene in the merger “on the basis of assurances and legally-binding commitments she has secured.” One of Paramount Skydance’s commitments is that it won’t combine linear channels with its streaming services and will maintain the editorial independence of its news services and children’s networks.
Paramount entered into this “deed of covenant” with the U.K. Department for Digital, Culture, Media, and Sport.
As part of its agreement with the British government, Paramount+ and HBO Max will not combine in the U.K. The two streaming services may combine in the U.S. should the merger close.
Nandy previously said she was “minded to intervene” in Paramount’s acquisition of Warner Bros. before making her decision.
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The U.K. joins numerous international markets, including the European Union, in approving the merger.
The British government’s decision will disappoint those who oppose the deal. British actors Benedict Cumberbatch, Alan Cumming, and Benedict Wong penned an op-ed in the Guardian late last month, imploring U.K. officials to block the merger for fear it will “inflict immense harm on the British public” through major job cuts.
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