UK regulators approve Paramount's $81 billion acquisition of Warner Bros. Discovery

Britain's Competition and Markets Authority has cleared Paramount Global's $81 billion bid to acquire Warner Bros. Discovery, finding that the merger would not substantially lessen competition in the United Kingdom. The Department for Digital, Culture, Media and Sport also said it would not intervene after Paramount offered a series of legally-binding commitments concerning its UK broadcasting and streaming operations.

Paramount, which was purchased by Skydance last year, described the approvals as “an important milestone” toward completing the transaction. The commitments include maintaining editorial independence for Channel 5, keeping linear channels separate from on-demand services, and ensuring that children's channels such as Nickelodeon and Cartoon Network remain distinct.

The culture department said it will monitor compliance and require annual statements from Paramount. Earlier, Culture Secretary Lisa Nandy had indicated she was “minded to intervene” over concerns about news, television and streaming competition, but the agreed safeguards satisfied the department.

The approval removes a UK regulatory obstacle, though the deal still faces a lawsuit filed by a coalition of 12 US states alleging the merger would reduce competition in the US market. The antitrust case is set for a 12-day trial in early March, and Paramount has pledged to defend the transaction vigorously.

Critics, including several British actors, have warned that the merger could harm the public, but regulators concluded that the pledged protections mitigate those risks.