The United Kingdom is considering intervening in Paramount Skydance’s proposed US$110 billion acquisition of Warner Bros. Discovery, a move that could delay one of the largest media mergers in recent years despite approvals from several major global regulators.
The UK government announced Tuesday that it is assessing whether the transaction raises concerns over media plurality and competition in the country’s broadcasting and streaming sectors. If it proceeds with a formal public interest intervention, the deal could face reviews by both Ofcom and the UK Competition and Markets Authority (CMA).
The proposed merger has already received regulatory approval in the United States, China, Australia, Germany, France and Saudi Arabia. The European Union is also reviewing the transaction, with Paramount expected to offer concessions aimed at addressing competition concerns.
UK Culture Secretary Lisa Nandy has given both companies until July 6 to respond to the government’s concerns before deciding whether to launch a formal intervention.
The UK says the merger could affect news and on-demand media services because Paramount owns Channel 5, while Warner Bros. Discovery operates CNN International. Other UK-facing assets that could be impacted include TNT Sports, Cartoon Network, Nickelodeon, Paramount+ and HBO Max.
Nandy also noted that Britain’s current media ownership rules were written primarily for traditional television broadcasting and may not adequately address the growing influence of streaming platforms. She said the government is prepared to introduce updated legislation if necessary.
If a formal intervention is issued, Ofcom and the CMA would have up to 40 days to assess the transaction before reporting back to the government. The deal could then either be approved, cleared with conditions, or referred for a more extensive investigation lasting up to 24 weeks.
Paramount said it remains confident the acquisition does not raise concerns over media plurality and expects the deal to proceed within its planned timeline. Warner Bros. Discovery had not publicly commented on the UK’s announcement.
To reassure shareholders amid potential regulatory delays, Paramount has agreed to pay Warner Bros. Discovery investors a US$0.25-per-share “ticking fee” for every quarter the merger remains incomplete after September 30, amounting to roughly US$650 million per quarter.
While Paramount+ and HBO Max currently account for only a small share of the UK streaming market compared with industry leader Netflix, British officials say the merger’s impact on media diversity and the future of streaming regulation warrants closer examination.
