LONDON, June 30 (Reuters) – The United Kingdom is inclined to intervene in Paramount Skydance Corp’s proposed $110 billion acquisition of Warner Bros Discovery, citing concerns about the impact on press freedom and the provision of on-demand programming.
The measure is the first step in a process that could lead to the deal being referred to the country’s antitrust regulator, which gained prominence in 2023 when it blocked the acquisition, worth US$69 billion, of Activision Blizzard — creator of the “Call of Duty” franchise — by Microsoft, which sparked outrage from the two American companies. The agency later changed its decision after Microsoft changed its acquisition plan.
The United Kingdom’s possible intervention comes at a time when the global agreement has already been approved by the United States, China, Australia, Germany, France and Saudi Arabia.
Culture Minister Lisa Nandy, who set a July 6 deadline for companies to respond, said in a statement: “I am aware of the need to reach a final decision in a timely manner and will strive to do so in an appropriate manner.”
Nandy said that although the deal was global in nature, it would impact British assets. Paramount owns the United Kingdom’s Channel 5, a free-to-air TV station that broadcasts news programs, while Warner owns CNN International.
Other British companies that could be affected include TNT Sports, Cartoon Network, Nickelodeon, as well as Paramount+ and HBO Max.
Continues after advertising
After the deadline for responses, Nandy will decide whether to issue a formal notification of public interest intervention; If it does, it will trigger reviews by the British media regulator, Ofcom, and the Competition and Markets Authority.
Regulatory bodies have up to 40 days to submit their reports. Once they do, Nandy will decide whether to approve the deal or refer it for further investigation, which could last up to 24 weeks.
If concerns are identified, companies could attempt to resolve them by offering corrective measures, such as divestitures or commitments to protect editorial independence.
Continues after advertising
Neither company responded to a request for comment.
