U.K. clears Paramount-WBD deal
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An aerial view of the Paramount logo on the water tower at Paramount Studios. Photo: Justin Sullivan/Getty Images
The U.K. Competition and Markets Authority (CMA) on Thursday said it gave Paramount the green light to acquire Warner Bros. Discovery.
- It comes following assurances from Paramount that it would preserve editorial independence, invest in U.K. programming and protect children's networks..
Why it matters: It's a major regulatory win for Paramount, which is facing a more contentious approval battle back home.
Zoom in: Paramount on Thursday confirmed it entered "into a deed of covenant and undertaking" with the U.K. Department for Digital, Culture, Media and Sport.
- It also says the decision by the U.K. government not to intervene in the deal, "further demonstrate the misguided and gerrymandered market definitions relied upon by the US state AGs in their antitrust complaint in California."
The big picture: Paramount says it has already received competition clearances from antitrust and competition authorities in 66 jurisdictions around the world, including key markets such as Europe, Australia, Brazil, Canada, and China.
- The U.S. federal government has also cleared the deal.
Catch up quick: Paramount last month agreed to postpone closing its merger with WBD until five days after a state antitrust case opposing the deal is resolved, or until its merger agreement expires in June 2027.
- On Tuesday, a court scheduled a 12-day trial for the states' case against Paramount to begin on March 2, 2027. Paramount was pushing for a trial this fall, as the company's expensive ticking fee goes into place Oct. 1.
What to watch: The nearly-unanimous approval of the deal by competition authorities around the globe gives credence to critics who say politics motivated the dozen Democratic State Attorneys General that have sued to block the deal.
- On Tuesday, Paramount chair David Ellison argued in an op-ed that the states' lawsuit wasn't rooted in antitrust concerns, but "whether I can be trusted as a steward of Warner's CNN."
The bottom line: It will be up to an independent judge to make that determination next year at trial, unless Paramount settles the states' lawsuit before that.
