UK may intervene in US$110 billion deal between Paramount and Warner Bros Discovery

Warner Bros Water Tower is pictured at Warner Bros studios in Burbank, California, USA
Reuters
The United Kingdom has signaled it may intervene in the proposed acquisition of Warner Bros. Discovery by Paramount Skydance Corp., valued at US$110 billion, citing concerns about the impact on press freedom and the provision of on-demand content.
The measure is the first step in a process that could lead to the deal being analyzed by the country's antitrust regulator.
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The body gained prominence in 2023 by blocking the purchase of Activision Blizzard, valued at US$69 billion, by Microsoft - owner of the "Call of Duty" franchise - a decision that generated a negative reaction from the two American companies.
Later, the body revised its decision after Microsoft changed the terms of the acquisition.
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The possible intervention by the United Kingdom comes at a time when the agreement has already been approved by States 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 endeavor to do so appropriately."
Nandy said that although the agreement is global, it could have an impact on assets in the United Kingdom.
Paramount owns Channel 5, a British free-to-air TV broadcaster that broadcasts news programs, while Warner controls CNN International.
Other assets in the United Kingdom that could be affected include TNT Sports, Cartoon Network, Nickelodeon, as well as Paramount+ and HBO Max.
After the response deadline, Nandy will decide whether to issue a formal notice of public interest intervention.
If this occurs, the case will be reviewed by the media regulator British, Ofcom, and the Competition and Markets Authority.
Regulatory bodies have up to 40 days to submit their reports. After that, 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 can try to address them with corrective measures, such as asset sales or commitments to protect editorial independence. Neither company responded to requests for comment.

Source: G1