Paramount clears global hurdles for Warner Bros Discovery deal

Paramount Skydance Corporation secured regulatory clearances in 68 countries to acquire Warner Bros Discovery but faces lawsuits from 12 US state attorneys general delaying the transaction.

The US-based media company announced Friday that an eight-month review process concluded with approvals from regulators worldwide, including the EU, UK, Australia and Mexico.

Independent competition authorities consistently found no basis to prevent the merger, stating that the combination posed no threat to competition.

Paramount Chief Executive Officer David Ellison said competition authorities in almost 70 jurisdictions independently and thoroughly reviewed the transaction.

Ellison noted that regulators reached the unanimous conclusion that the merger was pro-competitive, pro-consumer and pro-worker.

He added that litigation brought by the state of California and 11 other state attorneys general remained the final obstacle to completing the combination.

The company urged the 12 state officials to engage in good faith to resolve the litigation and bring the two companies together.

Ellison stated that the ongoing legal battle inflicted harm without benefit to constituents, imposing needless costs from penalty fees, litigation expenses and business disruption.

Antitrust regulators across jurisdictions reached findings that directly contradicted the core theories of the state officials regarding competition in theatrical film distribution and television.

The UK Competition and Markets Authority found the transaction did not give rise to a realistic prospect of a substantial lessening of competition.

The US Department of Justice and the European Commission recognized that cable networks competed directly and aggressively with streaming platforms for audiences.

The Australian Competition and Consumer Commission determined the merged company would still face constraints from other film studios, including numerous independent providers.