The U.K.’s competition regulator, the Competition and Markets Authority, has started an investigation into the proposed $110 billion acquisition by David Ellison-led Paramount Skydance of Warner Bros. Discovery.
The deadline for the CMA to announce its decision on the first phase of the investigation and whether it will approve the deal or refer the merger for a more in-depth probe is Aug. 7, but this could be extended.
Under the first phase of the enquiry, the CMA will look into whether a deal may harm competitiveness in an industry or region within the U.K., according to Reuters.
The announcement follows the conclusion of an information gathering process. CMA had invited interested parties to submit views on the impact that the transaction could have on competition in the U.K. and gave them from April 13 to 27 to comment.
In February, Paramount outbid Netflix after a prolonged bidding war to buy Warner Bros., bringing together major studios and networks such as CNN and CBS in an effort to compete more aggressively with streaming platforms.
The deal has already been subject to regulatory scrutiny across North America and Europe, as industry groups including those representing writers, actors, filmmakers and theater operators expressed concerns about the impact it could have on the entertainment business and consumers.
Last week, sources told Reuters that California, New York and other U.S. states were preparing a lawsuit to block the deal. On Friday, a spokesperson for California attorney general Rob Bonta’s office said California’s investigation remains active but declined to comment further.
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