UK clears Paramount’s $81 billion Warner Bros. Discovery deal

The U.K. government approved Paramount’s $81 billion acquisition of Warner Bros. Discovery on Thursday after the U.S. media company provided protections to ensure editorial independence of the combined companies’ television and streaming services.

The government had signaled last month that it might review the transaction due to concerns that the merged entity could gain excessive control over the country’s media outlets.

The approval came after Paramount offered legally binding commitments that the government deemed sufficient to "safeguard the continued availability of a diverse range of broadcasting and on-demand services in the U.K."

The decision removes an obstacle for Paramount and Warner Bros. as they work to complete a transaction that would merge two legacy movie and TV studios, multiple news outlets, streaming platforms and cable networks.

Paramount committed to maintaining separate television channels and streaming services in the U.K. and preserving their "distinct editorial identity." The company also agreed to commission and acquire original U.K. children’s content.

The Competition and Markets Authority, an arm of the U.K. government, separately approved the deal after completing an initial review of the transaction.

Paramount said it was pleased to have reached an agreement with the U.K. government. The company stated the deal would enhance consumer choice and allow the combined entity to invest in more projects and compete with tech companies.