The proposed $110 billion merger between Paramount Skydance and Warner Bros. Discovery has hit another potential roadblock, this time from the British government.
While the transaction has already cleared several major regulatory hurdles around the world—including approval from the U.S. Department of Justice—the British government has now indicated it is preparing to intervene over concerns surrounding media plurality and competition.
According to Variety, U.K. Secretary of State for Culture, Media and Sport Lisa Nandy informed Parliament that she is “minded to intervene” in the merger following consultations with the companies involved and independent research.
British Government Raises Media Plurality Concerns
Nandy said her department has formally notified both the current and proposed owners of Warner Bros. Discovery that government intervention is now under consideration.
Her primary concern centers on maintaining “a sufficient plurality of views in news media” across the United Kingdom.
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She also argued that regulators should consider the growing importance of streaming platforms and on-demand services when evaluating media mergers.
Under the proposed acquisition, an enormous collection of television networks and streaming services would fall under one corporate umbrella, including:
- Channel 5
- CNN International
- Nickelodeon
- Cartoon Network
- HBO Max
- Paramount+
- TNT Sports
According to Nandy, that concentration of ownership could have significant implications for British audiences.
Streaming Services Could Face New Regulatory Standards
Perhaps the biggest takeaway from the announcement isn’t just this merger.
Nandy indicated she wants to broaden Britain’s public interest tests to explicitly include streaming and on-demand video services in future media mergers.
The logo for Paramount Skydance – Paramount
If she ultimately decides to intervene, the government would introduce secondary legislation allowing those services to be formally considered under the Enterprise Act.
That could establish a new precedent extending well beyond the Paramount-Warner Bros. Discovery deal.
What Happens Next?
The companies have been given until July 6 to submit written responses to the British government.
If Nandy proceeds with intervention after reviewing those submissions, two additional investigations would begin:
- Ofcom would examine the merger’s impact on media plurality.
- The Competition and Markets Authority (CMA) would investigate whether the transaction creates competition concerns.
Only after receiving those reports would the government determine whether to launch a full Phase 2 investigation under the Enterprise Act.
Paramount Remains Confident
Despite the latest development, Paramount Skydance says it remains confident the acquisition doesn’t present any media plurality issues in the United Kingdom.
David Ellison in an interview with Bloomberg – YouTube, Bloomberg Podcasts
A company spokesperson told Variety: “We are grateful for the continued constructive engagement with all interested government bodies and relevant authorities, including in the U.K. We are confident that our proposed transaction does not pose any media plurality issues in the U.K. and remain confident in our stated transaction timeline.”
Another Hurdle for a Massive Media Deal
The British government’s announcement represents one more obstacle for one of the largest entertainment mergers ever proposed.
The transaction has already secured approval in the United States, China, Australia, Germany, France, and Saudi Arabia, while reports have indicated the European Union is also expected to approve the deal after certain remedies are implemented.
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However, Britain’s willingness to potentially intervene demonstrates that regulatory scrutiny is far from over.
Even if the merger ultimately receives approval, the process could become longer and more complicated should U.K. regulators decide the combined company’s control over television networks, news outlets, and streaming platforms warrants a deeper investigation.
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