The British government has signaled it could intervene in Paramount Skydance’s proposed takeover of Warner Bros. Discovery, citing concerns about media pluralism.
Lisa Nandy, the minister responsible for media oversight, notified Parliament on Tuesday that she is “minded to intervene” in the $110 billion merger, which would see Paramount acquire CNN, HBO Max, the Warner Bros. movie studio, and other Warner Bros. Discovery assets.
In a written statement to Parliament, Nandy said her concern centered on the need for “a sufficient plurality of views in news media in each market.”
The deal has already been cleared by the U.S. Department of Justice, as well as regulators in Australia, China, France, Germany, and Saudi Arabia. It is still awaiting a decision from the European Union’s antitrust watchdog, which is reportedly working through the final details of its approval.
“I am conscious that the proposed acquisition is global in nature,“ she added. ”In reaching this decision, my focus has been, and will remain, on the UK public interest and the range of services available to UK audiences, including Channel 5, TNT Sports, Cartoon Network, Nickelodeon, and CNN International, as well as Paramount+ and HBO Max.”
Nandy noted that the current rules don’t specify how to handle media mergers that also involve online video and streaming services and would require updating if she decided to intervene.
“I believe this ought to be able to be considered in relation to this and all future media mergers given the role on-demand viewing now plays in the market,” she wrote.
If she decides to formally intervene, the next step would be for British media regulator Ofcom to assess and report on the public-interest considerations. The country’s anti-trust regulator would separately review whether a relevant merger situation has been created and what impact the deal may have on competition.
The companies have been given until July 6 to respond.
A Paramount spokesperson told The Epoch Times that the company is “grateful for the continued constructive engagement with all interested government bodies and relevant authorities, including in the UK.”
“We are confident that our proposed transaction does not pose any media plurality issues in the UK and remain confident in our stated transaction timeline.”
The Epoch Times has reached out to Warner Bros. Discovery for comment.
Paramount has said it expects to close the deal by early fall. The company has agreed to pay a “ticking fee” of $0.25 per share per quarter to Warner Bros. Discovery shareholders if the transaction does not close by Sept. 30.
