Paramount-Skydance–Warner Bros. Discovery Merger Wins UK Clearance Amid U.S. Antitrust Challenge

The UK Competition and Markets Authority (CMA) has approved the Paramount Skydance acquisition of Warner Bros. Discovery, allowing the $110-$111 billion transaction to proceed in Britain. Approval was conditioned on a “deed of covenant” that bars the combined firm from merging linear TV channels with its streaming services, preserves editorial independence for news and children’s networks, and guarantees fair archive access for CNN, CBS and Channel 5. In the United States, twelve state attorneys general continue to pursue an antitrust lawsuit, with a 12-day trial scheduled for March 2 2027.

Deadline HollywoodThe WrapUK Regulator Approves Paramount's Acquisition of Warner Bros. Discovery; Lawsuit by 12 U.S. States Remains Final Hurdle — BigGo Finance

The merger was announced in early 2026 and has undergone parallel reviews in multiple jurisdictions. The CMA concluded that the deal would not substantially lessen competition in film distribution, children’s programming, or streaming, citing competition from Universal, Disney, Sony, Netflix, Apple, Amazon Prime Video, BBC iPlayer and ITVX. UK Culture Secretary Lisa Nandy opted not to intervene after Paramount CEO David Ellison offered the binding commitments described above.

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Block the Merger, a coalition of creative-industry groups, said the UK concessions “lend powerful credibility” to the U.S. antitrust case and warned that binding remedies in Britain underscore the dangers of a more concentrated U.S. market. David Ellison called the CMA decision a “significant milestone” and argued it disproves the market definitions used by the state attorneys general.

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• Deal value reported as $110 billion (TheWrap, BigGo) and $111 billion.

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• Concessions remain in force for five years, with Channel 5’s editorial independence guaranteed until the end of 2034.

UK Regulator Approves Paramount's Acquisition of Warner Bros. Discovery; Lawsuit by 12 U.S. States Remains Final Hurdle — BigGo Finance

• A “ticking fee” of $0.25 per share per day activates on the fee’s start date, generating roughly $7 million daily and an estimated $1.06 billion if the merger closes.

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• If the transaction collapses, Paramount must pay Warner Bros. Discovery a $7 billion termination fee.

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The antitrust trial set for March 2 2027 will determine whether the U.S. states can block the merger. The outcome will influence whether the UK-approved concessions are ever implemented and could affect the financial penalties tied to the deal’s completion or termination.

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