Paramount’s proposed $110m take over of Warner Bros Discovery been given the all-clear in the UK after the company agreed a set of binding commitments to protect and maintain “the distinct editorial identities of key services and the editorial independence of news”.
Culture Secretary Lisa Nandy had signalled her intention to intervene in the deal but has decided not to following Paramount’s undertakings which will be formalised in a binding ‘deed of undertaking’.
These include:
A commitment that Channel 5 will continue to operate as a Public Service Broadcaster with a commissioning strategy focussed on the UK.
The “distinct editorial identity” of the post-merger firm’s linear channels will be protected and maintained, plus a commitment not to consolidate them with its on-demand services in the UK.
A promise that Channel 5 News will maintain its editorial independence and its editorial direction will remain “entirely separate” from CBS News and CNN International, plus a commitment that CNN International will continue to be available in the UK.
Separately, the UK’s Competition and Markets Authority has concluded the tie-up “does not give rise to a realistic prospect of a substantial lessening of competition”.
The UK decision is the latest in a series of national approvals for the deal, however it’s currently being held up by a lawsuit brought by several US states.
A full hearing isn’t due to start until March 2027 but there is speculation that the studios and states could reach an agreement ahead of then that allows the deal to proceed.