The UK government has granted approval for Paramount to acquire Warner Bros. Discovery. This decision was made on Thursday (the 6th) following a thorough analysis of the potential impact of the deal on the competitive landscape and the media sector. The total value of the operation is estimated at $111 billion USD, equivalent to approximately 569 billion Brazilian reais.
The decision came after the British Culture Secretary, Lisa Nandy, decided not to intervene in the deal, and the country's antitrust body stated that it would not conduct an in-depth investigation into the transaction.
Having received the green light from the UK, Paramount will now focus its efforts on the regulatory stage in the United States, where the agreement is still awaiting antitrust review scheduled for 2027.
To secure approval in the UK, Paramount accepted a series of commitments to the country's Department for Culture, Media and Sport. Among the established measures is maintaining the separation between traditional channels and streaming platforms, which precludes the immediate merger of services such as HBO Max and Paramount+.
The agreement also stipulates the protection of editorial independence for news divisions and children's audience channels. Thus, after the purchase, Channel 5 News must remain separate from CBS News and CNN International. These obligations will be valid for five years from the completion of the deal, and Channel 5 is also obliged to maintain its status as a public service broadcaster in the UK.
Paramount stated that the regulatory approvals open up opportunities for increased investment in content production and expanded choice for viewers. The company believes that merging these corporations will enhance its capabilities in creating and distributing international content.
David Ellison, a representative associated with Paramount, informed the UK government that the new company could achieve increased efficiency after the deal closes. He specified that possible optimization might affect internal areas such as administrative, technological, legal, and financial departments, as well as operational structures. However, the company emphasized that such changes should not affect editorial decisions or the diversity of content offered to the British public.
An analysis conducted by the Competition and Markets Authority (CMA) showed no significant concerns regarding film distribution in UK cinemas. Although the new conglomerate will become the largest distributor in the country, the body concluded that competition from major studios and smaller companies will persist.
Lisa Nandy also declined to promote a proposal that would expand the powers of Ofcom, the UK regulator, to assess the potential consequences of the deal for streaming platforms. The UK approval came amid protests against the merger. Artists, including Alan Cumming and Benedict Cumberbatch, appealed to the authorities to block the deal, according to information obtained by Deadline. Despite the criticism, the UK government decided not to obstruct the operation, leaving the regulatory dispute primarily in the United States.