Key facts
- The UK government is considering intervening in the $111 billion takeover of Warner Bros Discovery by Paramount Skydance.
- Culture secretary Lisa Nandy stated she was "minded to intervene" on public interest grounds, including media plurality.
- Paramount has until July 6 to respond to the government's potential intervention.
- The deal has already been approved by the US Department of Justice without concessions.
- The EU is expected to approve the takeover with certain remedies.
The British government is contemplating intervention in the proposed $111 billion acquisition of Warner Bros Discovery (WBD) by Paramount Skydance. UK culture secretary Lisa Nandy indicated she is "minded to intervene" due to concerns about maintaining a plurality of news views and media ownership within the UK.
Nandy informed current and prospective owners of WBD that she is considering intervention on public interest grounds. The focus of this potential scrutiny includes UK-operating services such as Channel 5, TNT Sports, Cartoon Network, Nickelodeon, CNN International, Paramount+, and HBO Max. Paramount has been granted until July 6 to present its response.
Should Nandy decide to proceed with intervention, the deal will undergo further examination by Ofcom and the Competition and Markets Authority, which is already conducting a separate antitrust inquiry. A "minded to" statement is the initial step before any legal action to block a merger or acquisition.
Paramount Skydance, led by David Ellison, aims to finalize the deal in the third quarter and expressed confidence that the transaction would not create media plurality issues in the UK. The acquisition has already received approval in the United States without concessions from the Department of Justice, while the European Union is expected to approve it with specific remedies, potentially requiring Paramount to divest its joint venture with Universal Pictures.
This potential intervention echoes a previous instance where Nandy issued a Public Interest Intervention Notice for the sale of The Telegraph newspaper, which was eventually completed. Nandy also noted that while existing legislation covers broadcast linear channels, future considerations should extend to streaming and video-on-demand services.