British regulators have formally approved Paramount Global’s proposed acquisition of Warner Bros. Discovery, a transaction valued at approximately $81 billion to $111 billion, depending on sources and currency conversions. The clearance, announced on Thursday, comes after extensive reviews by the United Kingdom’s Competition and Markets Authority (CMA) and the Department for Digital, Culture, Media and Sport (DCMS).
The deal, which would combine major film studios and television networks under one corporate umbrella, raised concerns in the UK over potential impacts on competition, media plurality, and editorial independence. Paramount owns a significant British media presence, including Channel 5, localized Nickelodeon programming, and CBS News operations, while Warner Bros. Discovery controls assets such as HBO, CNN, Cartoon Network, and TNT Sports’ UK arm.
Culture Secretary Lisa Nandy had initially indicated she was "minded to intervene" due to worries related to the diversity of views in UK news and the preservation of public service broadcasting elements. However, following negotiations with Paramount, Nandy announced that the government would not take further action after receiving legally binding commitments ensuring the continued editorial independence of Channel 5 News, which will remain distinct from Paramount’s other news outlets, including CBS and CNN. Paramount also pledged to maintain commissioning levels for UK-produced content, preserving the number of commissioning staff for at least five years and continuing Channel 5’s role as a public service broadcaster until its current licence expires in 2034.
The CMA concluded that the merger would not result in a substantial lessening of competition in the UK market. It cited ongoing competition from other major studios such as Universal Pictures, Disney, and Sony Pictures Entertainment, as well as from streaming services that provide alternatives to traditional distribution channels. The CMA and DCMS emphasized that Paramount would keep children’s channels like Nickelodeon and Warner’s Cartoon Network separate and would not merge its linear channels with on-demand services in the UK.
Paramount’s CEO, David Ellison, welcomed the clearance, while also highlighting that the company still faces significant regulatory challenges in the United States. More than a dozen U.S. states led by California Attorney General Rob Bonta are contesting the merger on antitrust grounds, arguing that the deal would concentrate too much market power in theatrical film releases and cable television channels. A federal trial to resolve these allegations is scheduled for March 2027. Paramount has agreed to pause the closing of the deal until then, with a breakup fee payable to Warner Bros. Discovery if the deal does not complete by June 4.
The combination of the two companies would create one of the world’s largest film and television groups, encompassing a wide range of assets from iconic film franchises such as Batman and Top Gun to popular television networks and streaming platforms including HBO Max and Paramount+. Warner Bros. Discovery recently reported disappointing quarterly financial results with a sharp decline in theatrical revenue and advertising sales, although its streaming service saw modest growth.
The UK approval marks a crucial step forward for the merger, following earlier endorsements from regulators in the European Union, Australia, Germany, France, Italy, China, and Canada. However, the final outcome remains uncertain as U.S. legal proceedings continue to unfold.