UK gives “green light” to the purchase of Warner Bros by Paramount

A CMA (Competition and Markets Authority) today gave ‘green light’ to the business, considering that ‘it does not create a realistic prospect of substantial reduction of competition in the UK’ and that there are no aspects justifying an intervention, as Paramount has strengthened the guarantees offered, transforming them into legally binding commitments.

At the same time, the UK Minister for Culture, the Media and Sport, Lisa Nandy, decided “not to issue a Public Interest Intervention Notification”, as the additional legally binding guarantees and commitments she has obtained so far from Paramount “provide a series of protections that will help to safeguard the continued availability of a wide range of broadcasting services and on request in the United Kingdom”, as well as the continuity of its distinctive editorial identities.

On June 30, Lisa Nandy had expressed her willingness to intervene in the operation in order to defend plurality and public interest, and the parties were given the opportunity to make allegations.

Paramount has offered a number of guarantees, including commitments on future investments in the UK, the maintenance of the distinctive editorial identity of key services and the editorial independence of news.

After further talks with the Ministry of Culture, the Media and Sport, the US company “offered to strengthen these guarantees and turn them into legally binding commitments”.

In addition, Paramount has undertaken to submit annual statements on compliance with the commitments of the agreement, while the British Ministry will closely oversee its implementation.

Among the main guarantees offered, Paramount has made clear its intention of not consolidating the linear channels of the new group with its services on request in the United Kingdom and undertakes to retain their own editorial identity.

With regard to its children's programming, Paramount has also promised that its children's channels, including Nickelodeon and Cartoon Network, will maintain their editorial identity and continue to produce and acquire original UK children's content.

As far as information plurality is concerned, it has undertaken to ensure that Channel 5 News maintains its editorial independence and total separation from CBS News and CNN International.

On the other hand, after examining the proposed merger in the light of the legal regime concerning the influence of foreign states, the minister concluded that “there is no reasonable reason to suspect that its obligation to issue a Foreign State Intervention Notification has arisen”, so she does not intend to intervene in the case, although she will re-evaluate the situation if new information suggests otherwise.