- The UK government is considering intervening in Paramount Skydance's proposed £81 billion ($110 billion) takeover of Warner Bros. Discovery.
- Ministers want to assess the deal's impact on media plurality, news diversity and streaming services.
- Paramount and Warner Bros. Discovery have until July 6 to respond before a decision is made.
The Paramount-Warner Bros. Discovery merger has cleared several major regulatory hurdles around the world, but the proposed £81 billion ($110 billion) deal is now facing fresh scrutiny in the UK. The British government is considering intervening on public interest grounds, raising the possibility of further delays to one of the largest media transactions in recent years.
The potential intervention centres on concerns over media plurality, news diversity and the future of television and streaming services available to UK audiences. If ministers decide to proceed, the transaction could face a more detailed investigation despite already receiving approvals in markets including the US, China, Australia, Germany, France and Saudi Arabia.
Why Britain is taking a closer look
UK Culture Secretary Lisa Nandy said her department had informed both companies that she is minded to intervene after reviewing independent research and holding discussions with the parties.
According to her statement to Parliament, the government wants to ensure the merger does not reduce the diversity of voices in the UK's media landscape or narrow consumer choice across both traditional broadcasting and streaming platforms. She also indicated that existing public interest rules may need updating to better reflect the growing importance of video-on-demand and streaming services.
The companies have been asked to submit written representations by July 6, after which Nandy will decide whether to issue a formal Public Interest Intervention Notice. If that happens, both Ofcom and the Competition and Markets Authority would conduct separate reviews before ministers reach a final decision.
What is at stake?
The merger would combine a broad portfolio of media assets serving UK audiences, including Channel 5, CNN International, TNT Sports, Nickelodeon, Cartoon Network, Paramount+ and HBO Max.
While streaming platforms themselves are not currently covered under existing media plurality rules, Nandy reportedly said the government is prepared to introduce secondary legislation if necessary to ensure the regulations reflect modern viewing habits.
Britain's Competition and Markets Authority is already conducting its own review of the transaction and is expected to decide by August 7 whether a more detailed competition investigation is required.
A prolonged review could also have financial consequences. Under the merger agreement, Paramount has agreed to pay Warner Bros. Discovery shareholders a "ticking fee" of about £480 million ($650 million) for every quarter the transaction remains incomplete after September 30, demonstrating the companies' confidence that regulatory approvals would be secured quickly.
Paramount said it remains confident the deal does not raise concerns over media plurality and expects the transaction to proceed within its planned timetable. Warner Bros. Discovery had not publicly responded at the time of reporting.
Should the UK launch a full investigation, it would become the most significant remaining regulatory hurdle for the global media deal, with the companies potentially required to offer remedies such as asset sales or commitments to safeguard editorial independence before receiving final approval.
