Hollywood
UK regulator launches review of Paramount Skydance’s $110bn Warner Bros deal
CMA begins Phase 1 probe into major media merger amid global regulatory scrutiny
LONDON: The UK’s competition watchdog has officially opened its review into Paramount Skydance’s proposed $110 billion acquisition of Warner Bros Discovery, stepping into what is shaping up to be one of the most closely watched media consolidation deals in recent years.
The Competition and Markets Authority confirmed on Tuesday that it has moved into Phase 1 of its investigation after completing the initial information-gathering stage.
The regulator will now assess whether the proposed merger could substantially lessen competition within the UK’s media and entertainment sector. It has set an August 7 deadline for its preliminary decision, after which it will either approve the deal or escalate it to a more in-depth Phase 2 investigation.
As part of its early review process, the authority had invited submissions from industry participants between April 13 and April 27, seeking views on the potential competitive impact of the acquisition.
The deal, led by Paramount Skydance, reportedly emerged after it outbid Netflix in a competitive process earlier this year for Warner Bros Discovery.
If completed, the transaction would bring major global media assets under a single corporate structure, including news and entertainment networks such as CNN and CBS.
The proposed acquisition has already drawn significant attention from regulators and industry stakeholders across both Europe and North America. Concerns have been raised by creative industry groups, including writers, actors and cinema operators, over the potential implications of further consolidation in the global entertainment market.
Separately, according to a report by Reuters, several US states, including California and New York, are preparing legal action aimed at blocking the transaction.
As regulatory scrutiny intensifies on both sides of the Atlantic, the outcome of the CMA’s review is expected to play a key role in determining the future of one of the entertainment industry’s most high-stakes mergers.
