UK weighs review of Paramount's $111 billion Warner Bros Discovery deal
Culture secretary Lisa Nandy raised media plurality concerns over the proposed tie-up, which would combine major TV, film and streaming assets.
By Hana Yoshida · Markets Reporter
3 min read
The UK government is considering a public-interest intervention in Paramount Skydance’s planned $111 billion takeover of Warner Bros Discovery, a move that could slow one of the media industry’s largest pending deals. Culture secretary Lisa Nandy told parliament Tuesday that concerns about news diversity and media ownership in Britain may warrant a formal review.
Nandy said she had notified the current and proposed owners of Warner Bros Discovery that she was “minded to intervene” on public-interest grounds. According to her statement, the government is examining whether the deal could affect the range of viewpoints available in UK news media and the breadth of ownership across media businesses serving UK audiences.
The proposed acquisition would bring Warner Bros Discovery properties including CNN, HBO and Warner Bros films under Paramount Skydance. Paramount’s existing holdings include CBS in the US and Channel 5 in the UK.
In Britain, officials would focus on businesses that operate in the country or serve UK viewers. Nandy identified Channel 5, TNT Sports, Cartoon Network, Nickelodeon, CNN International, Paramount+ and HBO Max among the services relevant to the review.
Nandy has not made a final decision on whether to intervene. Paramount has until July 6 to respond before she decides whether to issue a formal notice.
If Nandy proceeds, the transaction would face scrutiny from Ofcom and the Competition and Markets Authority. The CMA has already opened a separate antitrust investigation into the merger.
A “minded to” notice is an early step that can precede legal intervention in a merger or acquisition. Such reviews can delay completion while regulators examine the public-interest issues raised by ministers.
Paramount Skydance, led by David Ellison, has said it expects to close the transaction in the third quarter of this year. Ellison is the billionaire son of Oracle founder Larry Ellison.
A Paramount spokesperson said the company was “confident that our proposed transaction does not pose any media plurality issues in the UK” and said it remained confident in its deal timetable.
The deal has already cleared some overseas hurdles. The US Justice Department approved it this month without requiring concessions, according to the Financial Times, while the European Union is expected to approve the takeover with remedies that could include Paramount leaving its joint venture with Universal Pictures.
The Financial Times reported that a UK intervention could add strain between the Trump administration, which supports the Paramount takeover, and a UK government led by prime-minister-in-waiting Andy Burnham.
Nandy has used the public-interest process in another media transaction. The sale of the Telegraph newspaper was delayed for months after she proceeded with a Public Interest Intervention Notice, the legal mechanism that starts a government and regulatory investigation into a media merger.
That transaction closed Tuesday, with Germany’s Axel Springer confirming its acquisition of the newspaper.
Nandy also said current legislation was drafted largely with traditional broadcast channels in mind, but should take account of streaming and video-on-demand services. She told parliament that if she intervenes in the Paramount-Warner Bros Discovery merger on that basis, she will bring forward secondary legislation to finalize the public-interest consideration.
This story draws on original reporting from Ars Technica.