The U.K. government cleared Paramount's $81 billion purchase of Warner Bros. Discovery after the U.S. media company offered protections to ensure editorial independence of the combined companies' television and streaming services.

Last month, the government had indicated it may review the deal amid concerns that together Paramount and Warner Bros. could gain too much control over the country's media outlets. The government decided against that move believing Paramount's assurances and legally binding commitments are sufficient to "safeguard the continued availability of a diverse range of broadcasting and on-demand services in the U.K."

The decision clears a hurdle for Paramount and Warner Bros. as the media giants work to close a deal that stands to reshape the entertainment industry. The combination is set to unite two legacy movie and TV studios, as well as multiple news outlets, streaming platforms and cable networks.

The deal still faces substantial legal challenges in the U.S., where state attorneys general have sued to block the purchase.