Asia
China Approves $110B Paramount Skydance-Warner Bros Discovery Merger
Chinese regulators have cleared Paramount Skydance's proposed $110 billion acquisition of Warner Bros Discovery. This approval follows the approvals from United States, Australia, Germany, France and Saudi Arabia. The European Union has not yet decided on the merger, one of the largest media industry deals in years.
Key Insights
- The $110 billion merger between Paramount Skydance and Warner Bros Discovery is approved by Chinese regulators.
- It received approvals in the US, Australia, Germany and France; Saudi Arabia followed suit.
- The deal had to be approved by China, as both are companies which release films in the Chinese market.
Chinese regulators have approved the proposed $110 billion merger of Paramount Skydance and WB. The approval comes as another significant progress for the deal previously secured clearance from several other nations.
Multiple countries approved merger
After winning approval from the U.S. Department of Justice and regulators in Australia, Germany, France and Saudi Arabia, China is the latest approving body to greenlight the merger.
The fact that both Paramount and Warner Bros Discovery put out motion pictures in China needed China's stamp of approval. Although it has yet to take a decision on the transaction in the European Union.
China Almost Always Is An Important Film Market
As the domestic film industry in China has continued to grow, Hollywood studios have found themselves more reliant on smaller amounts of money from their places.
There are still some strong Hollywood performances in the country. The movie Meg 2: The Trench for Warner Bros grossed $53.3M in China. That's because by the time Paramount's hit Top Gun: Maverick was never released as tensions were rising between the U.S. and China enough that it was never shown there.
Source: Reuters
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