UK signals intervention in Paramount Skydance Warner Bros. Discovery deal

MUMBAI: The plot twist isn’t on screen this time, it’s unfolding in the regulator’s office. The UK government has signalled it is prepared to step into Paramount Skydance’s proposed $110 billion takeover of Warner Bros. Discovery, raising concerns that the blockbuster deal could concentrate too much influence over the country’s media landscape.

In a written statement to Parliament on Tuesday, UK Secretary of State for Culture, Media and Sport Lisa Nandy said she was “minded to intervene” in the merger following discussions with the companies and independent research commissioned by her department.

The proposed intervention centres on media plurality. Nandy said the government must ensure there is “a sufficient plurality of views” across UK news media and maintain a diverse range of organisations controlling media services for different audiences.

The concerns stem from the breadth of assets that would sit under a single owner if the transaction proceeds. The merger would combine Channel 5, Cartoon Network, Nickelodeon, CNN International, streaming platforms Paramount+ and HBO Max, along with TNT Sports, significantly expanding the merged company’s footprint across television and streaming.

Nandy also indicated that the government is considering updating public interest rules to better reflect today’s media landscape, where streaming and video-on-demand services have become central to how audiences consume content.

“If I decide to intervene in this merger on this basis, I will bring forward secondary legislation to finalise this public interest consideration,” she said, noting that existing provisions under the Enterprise Act require such legislative changes.

The companies have been invited to submit further written representations by 6 July before the government makes its final decision. Should Nandy formally intervene, Ofcom will examine the transaction’s implications for media plurality, while the Competition and Markets Authority (CMA) will assess whether the deal creates a relevant merger situation and whether it could substantially affect competition.

Following those reviews, the government will decide whether the transaction warrants a more detailed investigation under Section 45 of the Enterprise Act.

The proposed merger has already secured regulatory clearance in the United States, China, Australia, Germany, France and Saudi Arabia. It is also expected to receive approval from the European Union, subject to certain remedies, including the reported dissolution of the UIP distribution joint venture between Paramount and Universal.

Responding to the UK’s latest move, a Paramount Skydance spokesperson said the company remained engaged with authorities and was confident the transaction “does not pose any media plurality issues in the UK”, adding that it continues to expect the deal to close within its previously announced timeline.