April 13 - Britain’s competition authority said it expects to open a phase 1 investigation into Paramount Skydance’s proposed $110 billion acquisition of Warner Bros Discovery in the coming weeks, citing the economic importance of the film and television sectors.
A spokesperson for the Competition and Markets Authority (CMA) said in an emailed statement that because the film and TV industries contribute billions to the economy, it is important to assess whether transactions between studios could weaken competition. The spokesperson added: "We expect to launch our phase 1 investigation in the coming weeks."
Prior to this step, the CMA had already sought views on the deal’s compliance with competition law, part of its standard information-gathering routine before determining whether a formal investigation is warranted. Interested parties have been given until April 27 to submit comments to the regulator.
Paramount and Warner Bros did not immediately respond to requests for comment.
Separately, a coalition of more than 1,000 writers, actors and directors published an open letter on Monday opposing the transaction. The letter argued the merger would harm an entertainment sector the signatories described as already distressed. Notable signatories listed in the letter include Jane Fonda, Mark Ruffalo and Ben Stiller.
The proposed tie-up between Paramount Skydance and Warner Bros Discovery was announced in February following a weeks-long bidding contest that included Netflix. The CMA’s probable phase 1 review will examine whether the combination of the two studios could lessen competition in markets tied to film and television production and distribution.
The regulator’s initial outreach for views and the April 27 deadline represent the CMA’s preparatory steps ahead of a formal probe. The agency’s forthcoming phase 1 inquiry will determine whether there are sufficient competition concerns to progress to a more detailed phase 2 investigation.
Context and next steps
The CMA’s announcement outlines a near-term timeline for moving from information gathering to a formal review. Comments submitted by April 27 may inform the scope and focus of the phase 1 investigation the authority plans to open in the coming weeks.