UK Government Considers Intervention in Paramount-Skydance Acquisition of Warner Bros. Discovery

Britain's culture, media and sport secretary, Lisa Nandy, announced on Tuesday that the government is prepared to intervene in Paramount Skydance's proposed $111 billion acquisition of Warner Bros. Discovery. She said a letter had been sent to both the current and prospective owners of Warner Bros. Discovery indicating her intention to act, and that the companies have until July 6 to address the government's concerns.

Nandy highlighted that the merged entity would control a range of channels and streaming services, including Channel 5, TNT Sports, Cartoon Network, Nickelodeon, CNN International, Paramount+ and HBO Max. She cited worries about consolidation in the on-demand video market and the need for a sufficient plurality of news views in each market.

The UK decision follows approval of the deal by the U.S. Department of Justice, while the transaction still awaits clearance from British and European regulators. A spokesperson for Paramount Skydance said the company appreciates ongoing engagement with government bodies and believes the deal poses no media plurality issues in the UK, and remains confident about its timeline.

Paramount Skydance and Warner Bros. Discovery have indicated they could close the transaction by early fall, with a provision for a fee to shareholders if the deal is not completed by September 30. State officials in California have signaled a possible lawsuit to block the merger, though no legal action has yet been filed.