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Paramount Skydance said Friday it has secured all regulatory approvals required under its merger agreement to acquire Warner Bros. Discovery, clearing a major obstacle to the proposed media industry combination after an eight-month global review.
The final regulatory clearance came from Mexico, completing an approval process that covered 68 countries. Authorities in major markets, including the United States, European Union, United Kingdom, China, Australia, Canada and Brazil, have also approved the Paramount Skydance-Warner Bros. Discovery deal.
Despite receiving worldwide regulatory clearance, the acquisition cannot yet close because of ongoing litigation brought by California and 11 other U.S. state attorneys general. Paramount described the lawsuit as the final remaining hurdle to completing the Warner Bros. Discovery acquisition.
The company called on the states to negotiate a settlement and said it remains prepared to provide commitments and concessions that could resolve the dispute. Continued litigation could expose the companies to additional penalty fees, legal costs and business disruption, increasing pressure to reach an agreement.
Paramount said competition regulators worldwide found insufficient grounds to block the merger. Reviews examined potential effects on theatrical film distribution, movie production and linear television, among other areas.
According to Paramount, regulators including the U.S. Department of Justice, European Commission and Britain's Competition and Markets Authority concluded that streaming platforms, rival studios and other competitors would continue to place competitive pressure on the combined company.
The company also said authorities found no evidence that the merger would result in fewer films or lower-quality productions. Paramount highlighted its commitment to release at least 30 high-quality movies annually across the combined business.
With regulatory approvals now secured globally, attention shifts to the U.S. state litigation. Resolving that legal challenge would remove the last major barrier standing between Paramount Skydance and the completion of its Warner Bros. Discovery acquisition.
