London (AFP) – Britain on Thursday gave the green light to Paramount Skydance’s $110 billion takeover of Warner Bros. Discovery, as the entertainment and media mega-deal still faces a key hurdle in the United States. The UK government and the antitrust watchdog both cleared the deal after initially raising concerns over media plurality and competition, respectively.
The Competition and Markets Authority (CMA) found that the takeover would not weaken competition in film distribution, children’s TV, and streaming services. Britain’s culture minister Lisa Nandy, meanwhile, opted not to intervene in the merger, saying she had secured “assurances and further legally-binding commitments” to ensure a diverse range of broadcasting and on-demand services in the country. “These assurances included a range of commitments on future investment in the UK, maintaining the distinct editorial identities of key services and the editorial independence of news,” she said in a statement.
Paramount’s bid still faces hurdles across the Atlantic after a federal judge in California ordered the companies to temporarily pause their merger last month. Paramount agreed to delay the deal until June 2027. The US judge’s order came after 12 states led by California sued to block the deal over competition concerns, despite the justice department approving the merger.
If the merger eventually closes, the new combined company would reshape the entertainment and media industry, in addition to delivering a major win to its owners, the Ellison family, who are close allies of US President Donald Trump. The combined company would control a vast array of assets, including CNN, Warner Bros. Pictures, and the HBO Max streaming service.
“Paramount is grateful to the CMA for its constructive engagement and its review of the transaction,” the company said in a statement on Thursday. “These conclusions further demonstrate the misguided and gerrymandered market definitions relied upon by the US state AGs (attorney generals) in their antitrust complaint in California,” it added. The European Union gave the deal conditional approval last month.
© 2024 AFP
