Key facts
- The UK's Competition and Markets Authority (CMA) has cleared the £111bn Paramount-Warner Bros Discovery merger.
- The CMA concluded that the combined business will face sufficient competition in the UK.
- The merger's impact on cinemas, streaming, children's television, and creative workers was examined.
- The combined entity is expected to become the UK's largest theatrical film distributor with a 20-30% market share.
- Universal, Disney, and Sony provide significant competition in film distribution.
The UK's Competition and Markets Authority (CMA) has cleared the proposed £111bn merger between Paramount and Warner Bros Discovery, determining that the combined entity will not gain excessive market power in the UK. The watchdog's full decision addressed concerns regarding the deal's potential impact on cinemas, streaming services, children's television, and creative workers, concluding that substantial competition would persist across these sectors. While the merged company is projected to become the UK's largest theatrical film distributor with a 20-30% market share, the CMA noted that Universal and Disney hold similar shares, with Sony and other smaller studios also providing significant competition. The regulator found that Paramount and Warner Bros Discovery are not closer competitors to each other than they are to these other major studios. Concerns raised by cinemas about fewer film releases and demands for better revenue-sharing terms or shorter theatrical windows were dismissed, as were warnings about increased buying power affecting creative workers' wages and opportunities, due to competition from other major studios, smaller producers, and streaming companies. The CMA also stated that the combined entity would still contend with major streaming players like Netflix, Amazon Prime Video, Disney+, and Apple, as well as free services. This UK approval comes as Paramount seeks to finalize the takeover, having reportedly secured regulatory approval in 68 countries, though a lawsuit filed by California and 11 other US states remains an obstacle.