Chinese regulators clear Paramount Skydance-Warner Bros Discovery merger, source says

LOS ANGELES — Chinese regulators have approved the $110 billion merger between Paramount Skydance and Warner Bros Discovery, according to a source familiar with the decision.

The antitrust clearance marks a key milestone for the deal, following approvals from the U.S. Department of Justice and regulators in several other jurisdictions, including Australia, Germany, France, and Saudi Arabia. China, where both companies distribute films, was among the final major markets required to sign off on the transaction.

The European Union has yet to issue its decision on the proposed combination.

China has become a less significant revenue source for Hollywood in recent years as its domestic film industry continues to expand. Some major releases have still performed strongly, including Warner Bros.’ 2023 film “Meg 2: The Trench,” which earned $53.3 million during its opening weekend in China. However, other titles, such as Paramount’s 2022 blockbuster “Top Gun: Maverick,” were not released in the country amid ongoing geopolitical tensions between Washington and Beijing.

News of the approval was first reported by Semafor. 

-Editing by Franklin Paul, Sanjeev Miglani and Christian Schmollinger/Reuters