The UK is preparing to take the first formal step toward scrutinising Paramount Skydance Corp's proposed $110 billion takeover of Warner Bros Discovery on the grounds that the transaction could affect media freedom and the availability of on-demand programming in Britain.
Culture minister Lisa Nandy has flagged the potential intervention and given the parties until July 6 to reply. "I am mindful of the need to reach a final decision in a timely manner, and I will endeavour to do so as appropriate," she said in a statement announcing the deadline.
Although the deal is global in scope and has already obtained clearance from regulators in the United States, China, Australia, Germany, France and Saudi Arabia, Nandy said it would have material consequences for assets in the United Kingdom. Paramount is the owner of Channel 5, a free-to-air broadcaster that airs news programmes, while Warner controls CNN International. Other UK-facing operations that could be affected include TNT Sports, Cartoon Network, Nickelodeon, and the streaming platforms Paramount+ and HBO Max.
If the companies do not satisfy concerns by the July 6 deadline, Nandy may issue a formal public interest intervention notice. That step would trigger concurrent reviews by the media regulator Ofcom and the Competition and Markets Authority. The two regulators would have up to 40 days to report their findings.
Once Ofcom and the CMA return their reports, Nandy would then determine whether to clear the deal or to refer it for an extended investigation. A referral can extend the review process by up to 24 weeks. Throughout that period regulators will assess the transaction's implications for competition, plurality and access to services in the UK market.
Should specific concerns be identified, the companies have the option of proposing remedies aimed at resolving those issues. Possible remedies cited by the government include divestments or binding commitments intended to preserve editorial independence across affected outlets.
The UK government's move follows a previous high-profile intervention by the country's competition authority in 2023, when it initially blocked Microsoft's proposed $69 billion acquisition of Activision Blizzard - a decision that drew strong reactions from the U.S. companies involved and was later revisited after Microsoft adjusted its acquisition plan.
Neither Paramount Skydance nor Warner Bros Discovery responded to a request for comment on the UK government's stated concerns and the July 6 deadline.
Context on timing and process:
- If a public interest intervention notice is issued, Ofcom and the Competition and Markets Authority will conduct parallel assessments and must deliver initial reports within a 40-day window.
- Following those reports, the culture minister will decide whether to clear the transaction or to refer it for a more detailed investigation that could last as long as 24 weeks.
- Companies facing identified concerns may propose fixes such as divesting particular assets or giving formal commitments intended to protect editorial independence.