David Ellison and Paramount Skydance have cleared another major hurdle in the UK for their proposed acquisition of Warner Bros. Discovery.
On Thursday, the United Kingdom officially approved the blockbuster merger after Paramount agreed to a series of legally binding commitments designed to protect British broadcasting and media interests. The decision marks yet another international victory for the deal, leaving a lawsuit brought by a coalition of Democratic state attorneys general in the United States as the last major barrier preventing the transaction from closing.
For months, opponents of the merger hoped regulators around the world would step in to block the deal. Instead, that has largely failed to materialize.
With approvals already secured across the European Union, Canada, Australia, China, and dozens of other jurisdictions, the UK has now joined the growing list of governments concluding that the transaction can move forward.
UK Clears the Deal After Paramount Makes Concessions
The approval did not come without conditions.
To satisfy concerns raised by British regulators, Paramount agreed to legally binding commitments that include preserving the editorial independence of Channel 5 News, maintaining Channel 5 as a public service broadcaster through 2034, protecting the identities of UK children’s brands such as Nickelodeon and Cartoon Network, and continuing investment in British programming.
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Those assurances convinced UK officials that the merger would not substantially lessen competition in the country’s media landscape.
It’s another significant milestone for Ellison, who has repeatedly argued that the combined company will be better positioned to compete against streaming giants like Netflix, Amazon, and Disney.
Hollywood Celebrities Campaigned Against the Merger
The UK government’s decision also came despite a high-profile lobbying effort from several Hollywood figures urging officials to reject the transaction.
Among those publicly opposing the merger were Doctor Strange star Benedict Cumberbatch, Doctor Strange actor Benedict Wong, and X2 and The Good Wife actor Alan Cumming, who joined other entertainment industry figures in warning that the merger could threaten Britain’s creative industries and reduce opportunities for film and television workers.
Doctor Strange and Wong in Doctor Strange in The Multiverse of Madness – Disney+
Their campaign urged the UK government to block the deal or impose strict conditions before allowing it to proceed.
Ultimately, British regulators chose a different path.
The approval represents a significant setback for those lobbying against the acquisition and leaves the coalition of Democratic state attorneys general in the United States as the final major obstacle preventing the merger from closing.
The Last Obstacle Is No Longer Regulatory—It’s Political
With international approvals now largely complete and the Trump Justice Department having previously declined to challenge the transaction, attention has shifted almost entirely to the lawsuit filed by a coalition of 12 state attorneys general led by California.
That coalition is led primarily by Democratic attorneys general, who argue the merger would reduce competition across theatrical distribution, cable television, and streaming.
The Hollywood Sign – Photo Credit: Thomas Wolf, www.foto-tw.de, CC BY-SA 3.0 <https://creativecommons.org/licenses/by-sa/3.0>, via Wikimedia Commons
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The case is currently moving forward in federal court after U.S. District Judge Araceli Martínez-Olguín—who was appointed by former President Joe Biden—allowed the states’ challenge to proceed and temporarily halted the merger while the litigation continues.
With regulators across much of the world approving the transaction, the courtroom battle has become the defining fight over whether the merger ultimately succeeds.
David Ellison Says the Fight Isn’t Really About Antitrust
Ellison, however, has rejected the notion that the lawsuit is fundamentally about competition.
Instead, he has argued that much of the opposition is rooted in concerns over who would ultimately control CNN if Paramount acquires Warner Bros. Discovery.
A screenshot from CNN – YouTube, CNN
“There has been speculation about my politics, my loyalties, my intentions,” Ellison wrote recently while defending the merger in a New York Times op ed. “I believe this fight is not really about market share. The issue is whether I can be trusted as a steward of Warner’s CNN.”
Whether that argument ultimately persuades the court remains to be seen.
The Democratic attorneys general maintain their case is about protecting competition, while Ellison insists the merger has already survived scrutiny from regulators around the world and that the remaining legal challenge is driven by broader political concerns.
The Clock Is Now Ticking Toward Trial
With the UK now off the board, there is little uncertainty remaining about where this battle will be decided.
The merger has already cleared nearly every major regulatory review worldwide.
Unless the parties reach a settlement before then, the future of the $110 billion transaction will now be determined in an American courtroom.
David Ellison talks to Bloomberg – YouTube, Bloomberg Podcasts
For Ellison, today’s approval is another major victory.
For the coalition of Democratic attorneys general seeking to stop the merger, it also means they increasingly stand alone as the final obstacle between Paramount Skydance and one of the largest media mergers in Hollywood history.
Are you surprised the UK government approved the Paramount WBC merger? Sound off and let. us know!
