The UK government is considering intervening in the $110 billion deal for Warner Bros. Discovery to acquire Paramount. This was reported by Reuters, writes UNN.
Details
As the agency notes, such a move could lead to the case being referred to the UK's Competition and Markets Authority (CMA), potentially delaying the completion of the deal, despite already receiving approvals from the US, China, Australia, Germany, France, and Saudi Arabia.
UK Culture Secretary Lisa Nandy stated that the deal could affect the country's news, children's television, and streaming services sectors. She gave the companies until July 6 to respond to the concerns raised by the government.
I am aware of the need for a timely final decision and will do my utmost to achieve this
Regulators assess the possible impact of the deal
Reuters recalls that the UK antitrust regulator is already analyzing the deal and has until August 7 to decide whether to launch an in-depth investigation.
At the same time, the European Union's antitrust authorities are also continuing their assessment of the deal. It is expected that this week Paramount will propose measures to address potential competition risks, which could facilitate approval in the EU.
According to Reuters, delays in the UK process could have financial consequences for the parties. In particular, Paramount has agreed to pay Warner Bros. Discovery shareholders 25 cents per share for each quarter after September 30 if the deal is not completed. The total amount of such payments could reach about $650 million per quarter.
Paramount stated that they do not see risks to media pluralism in the planned deal and remain confident in meeting the planned timeline for its completion.
Paramount asks FCC to approve foreign financing for Warner Bros. deal28.04.26, 05:37