Paramount Skydance’s acquisition of Warner Bros. Discovery has received approval from the UK Competition and Markets Authority (CMA), marking another significant step toward the completion of the deal.
The transaction had previously been unconditionally approved by the European Commission, while Paramount has also secured competition clearances from authorities in the United States, Australia, Brazil, Canada, China, South Korea and several other markets.
With the latest UK approval, authorities and governments representing 66 jurisdictions have either cleared the transaction or opted not to challenge it on competition or foreign investment grounds.
Paramount and WBD argue that the combination will expand consumer choice and allow the newly formed company to invest in more productions and bring a wider range of stories to audiences around the world. The companies also see the deal as a way to create a larger-scale media and entertainment group capable of competing more effectively with major technology companies.
In its review, the CMA concluded that the combined company would continue to face competition in areas including theatrical film distribution and subscription video-on-demand (SVOD). The UK regulator’s findings also challenge some of the market definitions cited by US state attorneys general in their antitrust case seeking to block the Paramount-WBD transaction.
Paramount has also entered into a deed of covenant and undertaking with the UK Department for Culture, Media and Sport (DCMS) as part of the process.
