British regulators cleared Paramount Skydance’s pending $81 billion takeover of Warner Bros. Discovery, removing a significant European obstacle to the media megamerger.

The U.K. Competition and Markets Authority concluded following a Phase 1 investigation that the acquisition does not pose a “substantial lessening of competition” across the country’s theatrical film or subscription video-on-demand markets. Simultaneously, the Department for Digital, Culture, Media, and Sport announced Culture Secretary Lisa Nandy will not intervene after securing legally binding commitments from Paramount.

Under the formal agreement, Paramount committed to maintaining the editorial independence of Channel 5, keeping its linear television operations separate from on-demand platforms, and preserving the distinct identities of children’s networks such as Nickelodeon and Cartoon Network in the U.K.

The regulatory approval marks a key milestone for Paramount as it seeks to combine assets like HBO Max, Paramount+, CNN, CBS, and major film franchises under one corporate roof. However, the deal—valued at nearly $111 billion including debt—still faces a major legal challenge in the United States, where a coalition of 12 states led by California has sued to block the merger on federal antitrust grounds. Paramount has agreed to delay closing the transaction until mid-2027 while the U.S. case proceeds to trial in March.