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U.K. Opens Formal Probe of Paramount's $110bn Bid for Warner Bros. Discovery

The probe increases pressure on EU, U.S. and state regulators to decide whether the transaction can win final approval this quarter.

Overview

  • The U.K. Competition and Markets Authority launched a Phase 1 investigation on Tuesday and has until August 7 to decide whether to clear the merger or refer it to a Phase 2 in‑depth probe.
  • The European Commission is carrying out a separate Phase 1 antitrust review with an initial July 7 deadline to assess competition risks in the EU market.
  • U.S. scrutiny continues through the Department of Justice and subpoenas from state attorneys general, with California and New York reported to be preparing a multi‑state antitrust lawsuit that could delay or block the deal.
  • Paramount has alleged that Netflix led a lobbying campaign to oppose the merger, a charge Netflix calls 'absurd' and says it walked away from the transaction months earlier.
  • Paramount disclosed about $24 billion of Gulf sovereign financing and roughly 49.5% foreign ownership for the combined company, a disclosure that triggers extra review under EU foreign‑subsidies rules and raises the prospect of remedies or a longer approval timeline despite shareholder backing and a Q3 closing target.