Key Points
- U.K. Culture Secretary Lisa Nandy is considering intervening in Paramount Skydance’s proposed $110 billion acquisition of Warner Bros Discovery.
- Nandy cited concerns over media plurality, ownership concentration and children’s television under the Enterprise Act 2002.
- Paramount maintains the deal raises no media plurality concerns and remains confident it will close on schedule; the companies have until July 6 to respond to Nandy’s inquiries.
The British government is considering an action that would require Paramount Skydance to make serious concessions in order to receive approval for its blockbuster merger with Warner Bros Discovery (WBD).
In a statement to Parliament on Monday, British Culture Secretary Lisa Nandy said she is “minded to intervene” under the Enterprise Act 2002, citing concerns over whether the merger would preserve sufficient diversity of viewpoints and ownership within Britain’s media landscape.
Nandy said her department has notified Paramount and WBD of its concerns and has given the companies until July 6 to respond before she decides whether to issue a formal Public Interest Intervention Notice.
If she proceeds, Britain’s communications regulator, Ofcom, would examine the transaction’s impact on media plurality while the Competition and Markets Authority would continue its assessment of potential competition issues before Nandy determines whether to refer the deal for a more extensive investigation.
“My focus has been, and will remain, on the U.K. public interest,” Nandy said, noting that while the transaction is global in scope, the government’s review centers on its effects within Britain.
The review encompasses several media assets owned by the two companies, including Paramount’s public service broadcaster Channel 5 and WBD-owned CNN International, TNT Sports, Cartoon Network and streaming platforms Paramount Plus and HBO Max.
Nandy also highlighted potential concerns involving children’s television, where Paramount and WBD rank among the country’s largest providers of linear children’s programming behind the BBC.
Paramount said it remains confident the transaction will withstand scrutiny.
“We are confident that our proposed transaction does not pose any media plurality issues in the U.K. and remain confident in our stated transaction timeline,” a company spokesperson told reporters on Tuesday.
Under British law, a formal intervention would begin a multi-stage review process that could ultimately lead to a detailed investigation lasting up to 24 weeks. Should regulators identify concerns, Paramount could seek to resolve them through behavioral commitments or structural remedies before receiving final approval.
The U.K.’s review carries significant financial implications because Paramount agreed to a September 30 deadline deadline to complete the merger. If the deal remains pending beyond that date, Paramount must pay WBD shareholders a quarterly “ticking fee” of roughly $650 million until the transaction closes.
The proposed acquisition has already secured approvals in several major markets, including the United States, China, Australia, Germany, France and Saudi Arabia. European Union regulators are also reviewing the transaction, with Paramount expected to offer remedies aimed at addressing competition concerns.
In the United States, a number of state attorneys general are reviewing the transaction and could seek their own concessions by filing a federal antitrust case. California and New York are among the states considering that move, according to reports.
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- California, New York prepping lawsuit to block Paramount-Warner Bros deal
- Parks Associates: Combined Paramount-WBD will reach half of U.S. broadband households
- Warner Bros shareholders approve acquisition by Paramount
- DOJ green-lights Paramount-Warner Bros merger; California AG says deal not done
