UK clears Paramount’s stalled $110B Warner Bros. Discovery takeover

British authorities on Thursday cleared Paramount Skydance’s proposed $110 billion takeover of Warner Bros. Discovery, removing two regulatory hurdles for a deal that remains stalled by legal challenges in the US.

The Competition and Markets Authority (CMA) said it would not refer the transaction for an in-depth phase 2 investigation after concluding that the merger would not substantially reduce competition in the UK.

The regulator examined the deal’s impact on film distribution, television and film production, streaming services and children’s television channels.

It said the combined company would continue to face sufficient competition from companies including Disney, Universal, Netflix, Amazon and Apple.

Separately, Culture Secretary Lisa Nandy decided against launching a public-interest investigation after Paramount provided assurances and legally binding commitments on media plurality and editorial independence.

Paramount pledged to preserve the separate editorial identities of its UK channels and streaming services, including Nickelodeon, Cartoon Network, Channel 5 News and CNN International.

Channel 5 News will remain editorially independent from CBS News and CNN, while Paramount will provide additional funding for news, children’s programming and original drama.

The company must submit annual compliance reports to the government. Most commitments will remain in place for five years after the transaction closes.

Paramount agreed in February to buy Warner Bros. Discovery for $31 per share, valuing the company at about $81 billion in equity and $110 billion including debt.

The European Commission conditionally approved the deal last month.

However, the transaction remains challenged in the US by 12 state attorneys general and the Writers Guild of America, which argue that combining two major Hollywood studios would reduce competition.

The companies have agreed to delay closing the deal until June 1, 2027, or until an earlier court ruling resolves the challenges.