UK CMA clears Paramount-WBD's $110B merger after editorial assurances. EU approved last month. US trial still looms, with ticking fees over $1 billion.
The UK government has approved the $110 billion merger of Paramount Skydance and Warner Bros. Discovery, ending a potential antitrust probe. The Competition and Markets Authority said Thursday the deal does not raise competition concerns in Britain, after Culture Minister Lisa Nandy had signaled she might intervene.
Paramount, led by CEO David Ellison, offered legally binding assurances that it would maintain the editorial independence of its news operations and the distinct identities of key services, the UK's culture department said. The CMA's statement noted the merged company would still face sufficient competition in the UK market.
The approval follows the European Union's green light last month, which required Paramount to exit a joint venture with Universal Pictures in the region. But the deal still faces a legal fight in the United States. Twelve state attorneys general and the Writers Guild have sued to block it. Paramount agreed to pause the merger and is set for trial next March.
That delay is expensive. Under the merger agreement, Paramount must pay Warner Bros. Discovery shareholders about $7 million for every day after Sept. 30 that the deal has not closed. A March trial date means the ticking fees will exceed $1 billion before a judge rules.
Paramount said in a statement Thursday that the UK and EU approvals "further demonstrate the misguided and gerrymandered market definitions relied upon by the US state attorneys general in their antitrust complaint in California." The company argued the combination would enhance consumer choice and create a media company able to compete with Big Tech.
Paramount's UK and EU wins remove two major regulatory hurdles, but the US litigation remains the primary risk. The ticking fee structure puts pressure on both sides to settle or win a swift ruling. Warner Bros. Discovery shares have been under pressure as the deal uncertainty drags on.
For the broader media sector, the approval signals that regulators outside the US are willing to accept consolidation among traditional studios, provided they give up some joint ventures and maintain editorial independence. That could encourage other merger talks among legacy media companies looking to scale against streaming giants.
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