Key Highlights

  • Paramount Skydance secured all regulatory clearances required under its Merger agreement to acquire Warner Bros. Discovery, following an eight-month review spanning 68 countries.
  • The final clearance came from Mexico, with regulators in the EU, UK, Australia, Canada, Brazil, China, and the US also having approved the deal.
  • Litigation from California and 11 other US state attorneys general remains the final obstacle preventing the companies from closing the transaction.
  • Paramount has committed to releasing at least 30 high-quality films annually across the combined business.

Global Regulators Approve Merger After Lengthy Review

Paramount Skydance Corp. (NASDAQ:PSKY) said Friday it has secured all regulatory clearances required under its merger agreement to acquire Warner Bros. Discovery Inc. (NASDAQ:WBD), removing the final regulatory obstacle to the proposed combination after an eight-month review spanning 68 countries. The latest clearance came from Mexico, with regulators in the European Union, Britain, Australia, Canada, Brazil, China, and the United States, among other jurisdictions, having previously approved the transaction. Paramount said global regulators found no basis to block the deal on competition grounds across theatrical film distribution, film production, or linear television.

State Litigation Remains Final Hurdle to Closing

Despite clearing global regulatory review, the deal still faces litigation from California and 11 other US state attorneys general, which Paramount said represents the final obstacle preventing the companies from closing the transaction. The company urged the states to negotiate a settlement and said it remains willing to offer commitments and concessions to resolve the dispute. Paramount warned that continuing state litigation could result in additional penalty fees, legal expenses, and Business disruption, adding pressure to resolve the matter before the merger can be completed.

Regulators Found No Threat to Competition or Film Output

Paramount cited findings from regulators including Britain's Competition and Markets Authority, the European Commission, and the US Department of Justice, all of which concluded that streaming services and other studios would continue to constrain the combined company's market position after the merger. The company also said regulators found no evidence the transaction would reduce the Volume or quality of film output, pointing to its commitment to release at least 30 high-quality films annually across the combined business as part of its case for approval.