Earlier this year, Paramount struck a $111 billion deal to acquire competitor Warner Bros. Discovery, and legal and regulatory challenges both in the U.S. and abroad swiftly followed. Now, it seems the controversial merger is getting rid of each challenge one by one, a concerning sign for many critics who want the merger stopped. On Thursday, the merger got a green light from both the British competition watchdog, the Competition and Markets Authority (CMA), and the United Kingdom Department for Digital, Culture, Media and Sport, even though culture secretary Lisa Nandy has previously said she could intervene in the deal even if it gets approved by regulators in the United States. As part of the clearance, Paramount will keep British Channel 5 News’ editorial direction separate from CBS and CNN. “With the clearance from the Competition and Markets Authority, bodies and governments representing 66 jurisdictions have either cleared the transaction or chosen not to challenge it on competition and/or foreign direct investment grounds,” Paramount said in a press release. The European Union’s governing body also cleared the deal late last month.
The two companies are undeniably huge competitors in a film and TV industry that is already rapidly shrinking. They are even currently producing dueling Nightmare on Elm Street reboots. The studios are also competing entities in news ever since Paramount, led by Trump-ally David Ellison, acquired CBS News last year. Since that merger, CBS has undergone a major personnel purge and a striking change in editorial direction favoring Trump, a process that critics fear will also befall WBD’s CNN if the merger goes through.
