Britain clears Paramount's $110 billion acquisition of Warner Bros
UK Government Approves Paramount Skydance's Acquisition of Warner Bros Discovery
Aug 6 (Reuters) - Britain on Thursday cleared Paramount Skydance's $110 billion acquisition of Warner Bros Discovery on both competition and public interest grounds.
Government Decision and Rationale
The government said it would not intervene in the deal after Paramount strengthened its assurances about programming and news provision.
Previous Concerns and International Approvals
Britain said in June it was minded to intervene in the deal and potentially subject it to a public-interest investigation despite approvals from regulators in the United States, China and elsewhere.
Assurances Provided by Paramount Skydance
The government said media minister Lisa Nandy's concerns had been addressed by assurances provided by David Ellison, chief executive of Paramount Skydance, which would become legally binding commitments.
Editorial Independence and News Provision
Paramount has agreed that the combined group's linear and on-demand services in Britain would retain distinct editorial identities, including children's TV channels, the government said.
Paramount-owned Channel 5's news would remain editorially separate from CNN International and CBS News, it added.
Industry and Regulatory Reactions
Paramount welcomed the decision as an "important milestone" in closing the deal.
Competition and Markets Authority Review
The Competition and Markets Authority separately said the deal would not substantially lessen competition in movie distribution, children's TV channels and streaming services.
Remaining Regulatory Hurdles
The decisions mean the deal, which has been halted by a U.S. judge pending an antitrust challenge, will avoid lengthy reviews in Britain, leaving the U.S. states, led by California, as the remaining major regulatory hurdle.
(Reporting by Yadarisa Shabong in Bengaluru and Paul Sandle and Muvija M in London; Editing by Mrigank Dhaniwala and William James)
