Key facts
- Britain's culture secretary, Lisa Nandy, will not intervene in Paramount's proposed $110 billion acquisition of Warner Bros Discovery.
- Paramount made concessions regarding UK-based content and Channel 5's public service broadcaster status.
- The UK's Competition and Markets Authority (CMA) has cleared the deal, finding no harm to competition.
- The European Union has also approved the acquisition.
- The deal faces a final hurdle due to a legal challenge by US writers' and actors' guilds.
Britain's culture secretary Lisa Nandy has decided not to intervene in Paramount's proposed $110 billion acquisition of Warner Bros Discovery, removing a significant obstacle to the deal. This decision follows concessions made by Paramount, which include guarantees around protecting UK-based content and ensuring Channel 5 continues to operate as a public service broadcaster until the end of 2034.
The UK's Competition and Markets Authority (CMA) has also cleared the merger, determining it will not harm competition in the UK. The European Union had previously approved the transaction.
Paramount has agreed that its linear and on-demand services in Britain will retain distinct editorial identities for five years. Additionally, assurances were secured that the deal would not reduce the number of people commissioning content in Britain, and Channel 5 will continue to support UK-originated content.
Despite these approvals, the acquisition still faces a major legal challenge from a coalition of US actors' and writers' guilds, with a trial scheduled for March 2027. Concerns have also been raised about the potential impact on CNN's news coverage, given past issues at Paramount's CBS News.
Paramount stated that the clearances acknowledge the combination will enhance consumer choice and enable greater investment in creative projects.