Britain's Competition and Markets Authority (CMA) has launched a formal Phase 1 investigation into Paramount Skydance Corp.'s proposed $110 billion takeover of Warner Bros. Discovery Inc. The CMA's initial deadline to rule on the deal is August 7, after which it will decide whether to clear the merger or refer it for a more in-depth Phase 2 probe. The probe will examine whether the deal could harm competitiveness within the UK and its impact on the entertainment industry and consumers, including concerns from cinema chains about a potential reduction in film production.
Separately, UK Culture Minister Lisa Nandy is considering intervening in the acquisition due to concerns about media plurality. Nandy's department has contacted both Paramount and Warner Bros. Discovery, focusing on the potential broadcasting influence on British audiences, especially concerning networks like Channel 5, TNT Sports, and streaming services Paramount+ and HBO Max. She is also considering revising public interest rules to adapt to the increasing demand for on-demand media consumption.
The larger $110 billion deal aims to combine major Hollywood studios, news networks such as CNN and CBS, and streaming powerhouses like HBO and Paramount+. Paramount outbid Netflix for Warner Bros. in February. The deal faces scrutiny in other regions as well, with sources indicating that US states like California and New York are preparing lawsuits to block it. EU antitrust authorities are also reviewing the transaction, with an initial deadline of July 7.
