UK clears Paramount’s takeover of Warner Bros

The European Union gave the deal conditional approval last month. The Warner Bros. water tower is seen at Warner Bros. Studios in Burbank, Calif., Friday, Dec. 5, 2025. (AP Photo/Jae C. Hong) (AFP) — Britain on Thursday gave the green light to Paramount Skydance’s $110 billion takeover of Warner Bros. Discovery, though the entertainment and media megadeal still faces a key hurdle in the United States. The U.K. government and the country’s antitrust watchdog both cleared the deal after initially raising concerns over media plurality and competition, respectively. The Competition and Markets Authority found the takeover would not weaken competition in film distribution, children’s television and streaming services. Britain’s culture secretary, 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 U.K., 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 U.S. 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 combined company would reshape the entertainment and media industry while delivering a major win for its owners, the Ellison family, who are close allies of 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 Thursday. “These conclusions further demonstrate the misguided and gerrymandered market definitions relied upon by the U.S. state attorneys general in their antitrust complaint in California,” it added. The European Union gave the deal conditional approval last month. Our weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.