The UK competition watchdog has cleared the merger between Hollywood studios Paramount and Warner Bros. The Competition and Markets Authority (CMA) confirmed on Wednesday that it would not conduct a further investigation into the £85bn deal.
The CMA concluded that the merger does not pose a realistic prospect of a substantial lessening of competition in the UK. The inquiry, which began on 9 June, was initiated because Warner Bros' UK revenues exceed £100m.
Despite the combined entity becoming the UK's largest theatrical film distributor, the CMA noted it would still face strong competition from other market players such as Sony, Universal, and Disney. Concerns about potential price increases for children's television channels were dismissed due to declining demand for paid children's TV in favour of free-to-air broadcasters and streaming content.
The merger will also bring streaming platforms Paramount+, HBO Max, and Discovery+ under one company. However, the CMA determined that the UK streaming market is already crowded with established services like Netflix, Amazon Prime, and Disney Plus, which are unlikely to lose viewership to the new combined entity.
Culture Secretary Lisa Nandy had requested the watchdog to examine the acquisition in June, citing concerns it could stifle the UK's media landscape and threaten the range of services available to UK audiences.