UK Opens Formal Review of Paramount’s $110 Billion Warner Bros. Discovery Deal

Regulators will assess whether the merger could reduce competition in UK media markets.

Paramount Pictures Studios in Los Angeles, on April 28, 2026. John Fredricks/The Epoch Times

The UK’s competition regulator has formally launched an investigation into Paramount Skydance’s proposed $110 billion acquisition of Warner Bros. Discovery.

The Competition and Markets Authority (CMA) said on June 9 that it had launched phase one of a merger inquiry into the planned acquisition. The regulator has set Aug. 7 as the deadline for its preliminary decision on whether to clear the transaction or conduct a more detailed investigation.

“The CMA announced the launch of its merger inquiry by notice to the parties,” the regulator said.

The review marks another regulatory hurdle for the proposed deal, which is also being examined by European Union authorities and is expected to face scrutiny in the United States.

The CMA has not publicly expressed any concerns about the transaction. Instead, it is seeking to determine whether the acquisition could substantially reduce competition in the UK.

The deal would bring together some of the largest television, streaming, and entertainment brands operating in the UK.

Paramount owns the UK’s Channel 5 and its associated free-to-air channels, including 5Action, 5Star and 5USA. The company also operates the streaming platform 5 and Paramount+ in the UK, alongside brands including MTV, Nickelodeon, Comedy Central, and BET.

Channel 5’s streaming service offers programming from across Paramount’s portfolio, including children’s content from Milkshake! and programming from BET, CBS, Comedy Central and MTV.

Warner Bros. Discovery operates a separate collection of television, sports, and streaming businesses in the UK. Its UK portfolio includes TNT Sports, HBO Max, Discovery+, CNN International’s European operations, Discovery Channel, TLC, Cartoon Network, Quest, Really, and the Food Network.

TNT Sports holds rights to major sporting events, including Premier League football, UEFA Champions League football, rugby, cycling, and tennis.

The Warner Bros. logo is displayed on a water tower at Warner Bros. Studio in Burbank, Calif., on Sept. 12, 2025. Mario Tama/Getty Images

If approved, the merger would unite major free-to-air broadcasting, subscription television, sports broadcasting, and streaming services under a single corporate owner.

Competition Questions

The CMA opened its investigation following an invitation for public comments that ran from April 13 through April 27.

The regulator said the consultation was designed to gather initial views from interested parties regarding the transaction’s potential impact on competition in the UK.

In the EU, a filing published by the European Commission on June 2 showed that Paramount Skydance had requested approval for the acquisition under the European Union’s merger rules.

Regulators set a preliminary deadline of July 7 to determine whether to approve the transaction or launch a more detailed investigation.

Under the EU Merger Regulation, officials assess whether a proposed transaction could significantly reduce competition or strengthen a dominant market position.

A car passes Warner Bros. Studio in Burbank, Calif., on Oct. 21, 2025. Mario Tama/Getty Images

Warner Bros. Discovery operates television networks, film distribution businesses, and streaming platforms throughout Europe. The company has expanded HBO Max across multiple European markets in recent years.

According to financial results released Feb. 26, Warner Bros. Discovery reported 131.6 million global streaming subscribers at the end of 2025 and it generated $37.3 billion in annual revenue.

Paramount has been engaging with regulators across several jurisdictions since reaching an agreement to acquire Warner Bros. Discovery.

The transaction emerged after months of competition for control of the media company. Paramount ultimately prevailed with an all-cash offer valued at $31 per share.

The agreement also includes a quarterly ticking fee of 25 cents per share if the transaction is not completed by Sept. 30, along with a $7 billion regulatory termination fee.

Netflix, which had also explored a bid, eventually withdrew from the process and received a $2.8 billion termination payment.

The Netflix logo is displayed at a company office in Los Angeles on May 12, 2026. Justin Sullivan/Getty Images

In the United States, Sen. Elizabeth Warren (D-Mass.) and 12 other Democratic lawmakers urged the Department of Justice and the Treasury Department in a March 12 letter to closely review the transaction for potential antitrust and national security concerns.

“Congress has a responsibility to ensure that merger enforcement in concentrated creative industries—particularly transactions involving substantial foreign capital—is conducted rigorously and in strict adherence to federal law,” the lawmakers wrote at the time.

Alden Abbott, who served as chief legal officer of the Federal Trade Commission during President Donald Trump’s first administration, said in an April 13 blog post that the merger is unlikely to harm competition.

Abbott said the transaction offers “plausible efficiencies to strengthen competition against larger, well-capitalized rivals.”

“Ongoing monitoring makes sense as the industry evolves,” Abbott wrote. “But based on current evidence, the case for intervention looks weak.”

FCC Chairman Brendan Carr testifies before the House Appropriations Subcommittee on Financial Services and General Government at the Rayburn House Office Building in Washington on May 21, 2025. John McDonnell/Getty Images

Federal Communications Commission (FCC) Chairman Brendan Carr also signaled support for the transaction. Speaking with CNBC in March, Carr said the Paramount–Warner Bros. Discovery proposal appeared “cleaner” than the alternative deal involving Netflix.

“If there’s any FCC role at all, it'll be a pretty minimal role,” Carr said. “And I think this is a good deal, and I think it should get through pretty quickly.”