The United Kingdom faces significant economic and employment risks from Paramount Global’s proposed acquisition of Warner Bros. Discovery, according to industry experts and market analysts. The Competition and Markets Authority (CMA) is expected to issue its initial ruling on the takeover imminently, amid concerns that consolidation could threaten one of the UK’s largest sources of inward investment.
The British film and television sector heavily depends on investment from US studios, with Paramount and Warner Bros. Discovery among the most prominent contributors. The relationship between these American companies and the UK is mutually beneficial: US studios supply capital, intellectual property, and global distribution, while the UK provides crews, sound stages, visual effects, and post-production services essential to large-scale productions.
Data from the British Film Institute projects combined film and high-end television spending in the UK will reach £6.8 billion in 2025, a record high driven predominantly—approximately 85%—by inward investment from US studios and streaming services. This investment translates into £5 billion to £6 billion annually in direct studio and streamer production spending alone. When accounting for the broader supply chain, distribution, broadcasting, and associated consumer products, the total contribution of the US film and premium television industry to the UK economy is estimated to be between £17 billion and £21 billion each year.
The physical presence of major studios in the UK is substantial, with Warner Bros. Discovery operating its largest base outside the United States in Britain. It employs more than 4,000 permanent staff, a number that more than doubles during active productions. The company’s UK assets include Warner Bros. Studios Leavesden and TNT Sports. Paramount’s UK workforce is smaller, estimated at 1,000 to 1,500 employees. Notably, Paramount is acquiring Warner Bros. Discovery despite being the smaller entity, doing so through a heavily leveraged deal that reportedly leaves the combined company with approximately $79 billion (£58.7 billion) in debt against about $3 billion in annual free cash flow.
Industry observers warn that servicing this large debt burden will take precedence over funding film budgets and maintaining production levels, putting British jobs and studio activity at risk. The consolidation of major studios often results in decreased competition for scripts, talent, and production resources, which historically leads to fewer film releases and reduced investment. For instance, following Disney’s acquisition of Fox, the number of wide releases from the combined studio declined significantly.
Approximately 40% of major studio films are shot primarily in the UK, including major franchises such as James Bond and several Star Wars and Marvel productions, many of which qualify as British under local regulations despite being US studio projects. The potential decline in studio activity could therefore have direct local economic impacts.
The CMA's inquiry, launched on June 9, is accompanied by possible intervention by Culture Secretary Lisa Nandy on media plurality grounds, under the Enterprise Act. However, the UK regulatory framework is non-suspensory, allowing the deal to proceed without explicit clearance, raising concerns that any concessions offered by the companies may not be upheld under financial pressure.
Experts stress that the UK must safeguard its investment in the film and television sector, which has been nurtured over two decades. They caution that reducing the number of major US studios operating in the UK risks diminishing inward investment and undermines an industry ecosystem that supports thousands of skilled jobs. Some industry veterans advocate for blocking the transaction altogether to protect the country’s cultural and economic interests.