UK Competition Authority Clears Paramount-Warner Bros. Deal

The U.K. The regulator concluded that, despite the combined entity becoming the country’s largest distributor, Paramount will continue to face competition from Universal, Disney, Sony, Netflix, Apple, Amazon Prime Video, BBC iPlayer and ITVX. The CMA also noted that alternatives in the children’s-channel market and streaming services would keep the merged company “sufficiently constrained.”

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Culture Secretary Lisa Nandy secured a deed of covenant from Paramount that includes several legally-binding promises:

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• Linear channels will not be merged with on-demand services, and each will retain a distinct editorial identity.

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• Children’s networks such as Nickelodeon and Cartoon Network will remain editorially separate and continue commissioning original U.K. children’s programmes.

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• Channel 5 News will keep editorial independence from CBS News and CNN International, and the news archives will remain available on commercial terms.

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• Channel 5 will continue operating as a public-service broadcaster, with its commissioning strategy focused on U.K. news, children’s programming and drama.

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These commitments remain in force for five years, with the Channel 5 provisions extending until December 31, 2034 when its current public-service licence expires.

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The merger has also cleared regulators in Spain, Germany, Slovenia, Belgium, Czechia, Italy, France and Romania, and received approvals from the U.S. Department of Justice, Warner Bros. shareholders and the European Commission (subject to Paramount’s exit from United International Pictures). The U.S. Federal Communications Commission is still reviewing the foreign-investment aspects.

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Separately, a coalition of 12 state attorneys general obtained a temporary restraining order. A 12-day trial is scheduled to begin March 2, 2027, imposing over $1 billion in ticking fees on Paramount. The company said it will push the closing date to June 1, 2027 or five days after the trial’s outcome, whichever comes first, and faces a $7 billion termination fee if the deal collapses.

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The Culture Secretary’s decision not to issue a Public Interest Intervention Notice was framed as reliance on the secured assurances to safeguard diverse broadcasting and news services.

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• “Today, the Competition and Markets Authority have announced their decision that there are no competition aspects of this proposed merger in the U.K. which necessitate their further intervention.” — Sport

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• “These clearances recognize that the combination of Paramount and WBD will enhance consumer choice and enable a creative-first company to invest in more projects and bring stories to audiences worldwide,” — Paramount

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