The British government has approved Paramount's $110 billion acquisition of Warner Bros. Discovery after securing legally binding guarantees over UK programming and editorial independence, Culture Minister Lisa Nandy confirmed on Thursday.
The approval clears the way for the takeover, valued at $110 billion (approximately €95 billion), to move forward in the United Kingdom following clearance from the Competition and Markets Authority earlier this week.
Binding UK investment guarantees
The decision by the UK Competition and Markets Authority followed legally binding commitments provided by David Ellison, the chief executive of Paramount Skydance. Paramount is a major American media and entertainment conglomerate based in the United States.
In an official letter sent to the involved parties, the UK government highlighted that Paramount pledged to maintain current levels of UK-commissioned programming for at least five years. Paramount also committed to safeguarding the editorial independence of news, entertainment, and sports broadcasting services.
British Culture, Media and Sport Minister Lisa Nandy said in a statement that the commitments covered future investment in the UK, the preservation of distinct editorial identities for key services, and full editorial independence for news channels.
Following those assurances, Nandy confirmed she decided not to issue a Public Interest Intervention Notice regarding the acquisition.
Avoiding public interest investigation
The decision not to issue an intervention notice marks a resolution to concerns raised last June, when Nandy warned that the British government might step in and order an official investigation into the transaction. At that time, the deal had already secured approval from regulatory authorities in the United States, China, and several other countries.
Nandy added that Paramount will be required to submit annual compliance reports detailing its adherence to the agreed commitments. The Department for Culture, Media and Sport will closely monitor Paramount to ensure all obligations are met.
Under the agreement, Paramount will manage a broad range of established media assets within the United Kingdom. These include commercial television station Channel 5, pay-TV network TNT Sports, Cartoon Network, Nickelodeon, and news station CNN International.
The deal also encompasses major streaming services operating in the UK market, including Paramount+ and HBO Max.
Legal hurdles remaining in the US
Although the UK government and competition regulators have approved the purchase, the transaction remains suspended in the United States. The state of California and 11 other US states filed a lawsuit to block the deal on antitrust grounds.
The antitrust trial in the United States is scheduled for March 2027, keeping the takeover on hold in the American market until legal proceedings conclude.
