UK government likely to intervene in Warner Bros and Paramount’s $110 billion merger

UK government likely to intervene in Warner Bros and Paramount’s $110 billion merger Britain’s culture minister, Lisa Nandy, has set a 6 July deadline for the companies to respond to her concerns - Bookmark - CommentsGo to comments The UK government has signalled a potential intervention in the proposed $110 billion takeover of Warner Bros Discovery by Paramount Skydance Corp, a move that could significantly delay the global deal despite it having already received clearance from several major international regulators. This initial step could lead to the deal being scrutinised by the UK’s anti-trust watchdog, which famously blocked Microsoft’s $69 billion acquisition of Activision Blizzard in 2023 before a revised plan allowed it to proceed. The potential British intervention stands in contrast to the deal’s approval by the United States, China, Australia, Germany, France, and Saudi Arabia. EU antitrust regulators are also currently assessing the merger, with Paramount expected to offer remedies this week to address competition concerns, likely paving the way for European approval. To underscore its confidence in a swift regulatory process, Paramount has committed to a "ticking fee" for Warner Bros Discovery shareholders, amounting to 25 cents per share for each quarter the deal extends beyond 30 September – a sum roughly equivalent to $650 million every three months. Britain’s culture minister, Lisa Nandy, has set a 6 July deadline for the companies to respond to her concerns. Ms Nandy stated she is "mindful of the need to reach a final decision in a timely manner, and I will endeavour to do so as appropriate," noting that while the deal is global, it could impact news provision and on-demand services within the UK. Paramount operates Channel 5, a free-to-air broadcaster that includes news programming, while Warner owns CNN International. Other services potentially affected by the merger, as identified by the UK government, include TNT Sports, Cartoon Network, Nickelodeon, alongside streaming platforms Paramount+ and HBO Max. Ms Nandy highlighted that current legislation, drafted when broadcast television dominated viewing, does not adequately cover on-demand services, indicating she would introduce secondary legislation if necessary. Both Paramount+ and HBO Max currently hold a relatively small share of the UK streaming market. A 2025 report by UK media regulator Ofcom grouped Paramount+ with other services like Discovery+ and Hayu into an "other" category, collectively holding just 6 per cent of the market, significantly less than Netflix’s 59 per cent. HBO Max, which launched in the UK in March, is expected to command a similarly modest share. Following the companies' responses, the culture minister will decide whether to issue a formal public interest intervention notice. Should she proceed, this would trigger reviews by Ofcom and the UK Competition and Markets Authority, which have up to 40 days to report their findings. Ms Nandy would then determine whether to clear the deal or refer it for a more extensive investigation, a process that could last up to 24 weeks. If concerns are identified, the merging companies could propose remedies such as divestments or commitments to safeguard editorial independence. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments