The UK’s Competition and Markets Authority (CMA) has cleared the anticipated acquisition by Paramount Skydance Corporation of Warner Bros Discovery (WBD) – a deal valued at $110 billion (€95.2bn). The full text of the decision will be published in due course.

On June 30th, Lisa Nandy, the Secretary of State for Culture, Media and Sport announced she was ‘minded to’ issue a public interest intervention notice regarding the proposed acquisition.

The CMA announced the launch of its merger inquiry by notice to the parties on June 9th. The EC conditionally approved the deal on July 23rd.

Progress on the deal in the US has been paused following legal challenges from a number of States.

Meanwhile, WBD has reported that Q2 revenue fell 11 per cent YoY to $8.7 billion (€7.5bn).

The studios business recorded the largest drop, with revenue declining 39 per cent to $2.3 billion and adjusted EDITDA falling by 89 per cent to $96 million. The quarter saw disappointing box office performances from James Gunn’s Supergirl movie along with Mortal Kombat II which failed to match the success of tentpole 2025 releases including A Minecraft Movie and Sinners. WBD expects stronger performances from its H2 theatrical slate which includes Digger, starring Tom Cruise, and Dune: Part Three.

Advertising revenue was down 22 per cent to $1.7 billion, attributed to WBD’s loss of NBA rights in the US, declining domestic TV audiences and weaker international advertising. Revenue at the global linear networks division was down 17 per cent to $3.9 billion.

Streaming (inlcuding HBO Max), however, continued to perform strongly with revenue up 10 per cent to $3.1 billion, while adjusted EBITDA increased 75 per cent to $512 million. At the end of Q2, approximately 40 per cent of global HBO Max subscribers were on the ad-supported tier, an 11 per cent increase year-over-year.

“For all that’s changing in how people consume entertainment, we have held firm to our conviction that there is no substitute for creative excellence and quality storytelling, and it’s driving strong results,” commented CEO David Zaslav on a call with analysts. “Nowhere is it more evident than our streaming business, where the breadth, artistry and cultural influence of HBO programming across the globe is translating into great financial progress for HBO Max as a streaming offering.”

Other posts by :

1. Human AI; Access, Influence
2. Who else was eyeing Globalstar?
3. Analyst: Unrealistic expectations at SpaceX
4. Rocket Lab: “We will out-innovate SpaceX”
5. S&P ranks Arqiva’s debt as BBB+
6. AST SpaceMobile to make D2C progress this winter
7. EchoStar to put Hughes Network into bankruptcy
8. FCC explains C-band incentives
9. Analyst: Deep dive on Starlink’s prospects

Categories: Articles, Business, M&A, Policy, Regulation

Tags: CMA, Lisa Nandy, paramount, warner bros discovery, WBD