Paramount Skydance's $110 billion takeover of Warner Bros Discovery may face UK hurdle: Report
Britain has signalled it could intervene in Paramount Skydance Corp.'s proposed $110 billion acquisition of Warner Bros Discovery, opening the door to a lengthy regulatory
Britain has signalled it could intervene in Paramount Skydance Corp.'s proposed $110 billion acquisition of Warner Bros Discovery, opening the door to a lengthy regulatory review despite the deal already receiving approval from the United States, China and several other jurisdictions. If the UK government formally steps in, the merger could face scrutiny over its impact on media plurality and competition. Why is the UK reviewing the deal? UK Culture Secretary Lisa Nandy said the government is considering intervention because the merger could affect the provision of news and on-demand media services in Britain. "I am mindful of the need to reach a final decision in a timely manner, and I will endeavour to do so as appropriate," Nandy said.
She has given the companies until July 6 to respond before deciding whether to launch a formal public interest investigation. What concerns does Britain have? The government's primary concern is media plurality—ensuring that no single company gains excessive influence over news and media content. The combined company would own several significant media assets in the UK, including Channel 5, owned by Paramount CNN International, owned by Warner Bros Discovery TNT Sports Cartoon Network Nickelodeon HBO Max Nandy also noted that Britain's current media laws were written when broadcast television dominated the market and may not adequately cover modern streaming services.
She said the government could introduce new legislation if necessary. The merger has already secured regulatory approval in The United States China Australia Germany France Saudi Arabia Meanwhile, European Union antitrust regulators are still reviewing the transaction. What does Paramount say? Paramount rejected concerns that the merger threatens media diversity in Britain. "We are confident that our proposed transaction does not pose any media plurality issues in the UK and remain confident in our stated transaction timeline," a company spokesperson said. The company continues to expect the deal to close on schedule. Once the companies submit their responses, Nandy will decide whether to issue a Public Interest Intervention Notice (PIIN).
If she does, the deal will undergo parallel reviews by Ofcom Competition and Markets Authority The regulators will have up to 40 days to submit their findings. Based on those recommendations, the UK government can Approve the deal; Approve it subject to remedies, such as divestments or editorial safeguards; or Refer it to an in-depth Phase 2 investigation lasting up to 24 weeks.
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