Lisa Nandy, the UK’s Culture Secretary, has decided not to intervene in the proposed $110 billion deal between Warner Bros Discovery and Paramount following “assurances and legally-binding commitments” from Paramount.
At the end of June, the Department for Media, Culture and Sport wrote to both companies on behalf of Nandy, stating that she was “minded” to intervene in the proposed merger on the basis that it could impact on media plurality in the UK, including in relation to children’s programming, editorial independence and news media.
Both companies were given the chance to make representations in July, with Paramount putting forward a set of assurances seeking to address the issues raised by Nandy. “These assurances included a range of commitments on future investment in the UK, maintaining the distinct editorial identities of key services and the editorial independence of news,” said the DCMS.
Following further discussions, Paramount offered to strengthen those assurances and turn them into legally-binding commitments by way of a ‘deed of undertaking’.
The Competition and Markets Authority has also announced its decision that there are no competition aspects in the proposed merger in the UK which would necessitate further intervention.
Nandy has therefore decided not to issue a Public Interest Intervention Notice (PIIN) on the basis that “the assurances and further legally-binding commitments she has secured at this point from Paramount provide a set of protections that will help safeguard the continued availability of a diverse range of broadcasting and on-demand services in the UK; the continuation of their distinct editorial identities; and, the distinct editorial identities of key UK news programmes”.
DCMS added that the Secretary of State will meet with Paramount in the coming weeks with a view to seek assurances about the impact of the deal on the wider creative industries. Beyond this, the DCMS said she is also considering all avenues, ranging from changes to existing powers to further legislation should it be necessary, to ensure the government “has the ability to protect plurality, diversity and British content when it is under threat”.
Paramount’s commitments are to come into effect on the date on which the transaction completes, and will remain effective for a period of five years, said the DCMS. Commitments relating to Channel 5 will remain in effect until 31 December 2034, when the channel’s current public service broadcasting licence ends.
