The UK's Competition and Markets Authority (CMA) has initiated a probe into Paramount Skydance Corp.'s $110 billion takeover of Warner Bros. Discovery Inc. The watchdog has set an initial deadline of August 7, 2026, to make a Phase 1 decision on the deal. This merger would unite two major Hollywood studios known for franchises like "Mission: Impossible" and "Harry Potter," as well as significant news networks such as CNN and CBS, and streaming platforms like HBO.
The CMA's investigation, which commenced on June 9, 2026, followed an "invitation to comment" period from April 13 to April 27, 2026, allowing interested parties to submit their views on the transaction's potential impact on competition in the UK. The Phase 1 review aims to determine if the deal could harm competitiveness within an industry or region in the UK.
In addition to the CMA's inquiry, the UK Secretary of State for Culture, Media and Sport, Lisa Nandy, announced on June 30, 2026, that she is "minded to" issue a public interest intervention notice. This suggests a broader review of the merger's impact on UK audiences, including the availability of services like Channel 5, TNT Sports, Cartoon Network, Nickelodeon, Paramount+, and HBO Max. Nandy has given Paramount and Warner Bros. Discovery until July 6, 2026, to respond before making a formal decision on an intervention.
If the CMA identifies concerns during Phase 1, it could either approve the deal, refer it for a more in-depth Phase 2 investigation, or require remedies such as asset divestitures. A Phase 2 investigation would be led by an independent inquiry group and could take up to 24 weeks, with potential extensions. The European Commission is expected to clear the deal by July 7, 2026.
