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Britain’s Competition and Markets Authority (CMA) said on Tuesday it had opened a formal investigation into David Ellison’s $111 billion acquisition of Warner Bros. Discovery by Paramount.
In a statement, the Capital Markets Authority set an initial deadline of August 7 to rule on the massive Hollywood deal that will combine two major studios, two major news operations, streaming services, and two portfolios of cable networks.
“Initial period [the investigation will] The Mergers and Acquisitions Authority said: “It begins on the first business day after the date of this notice, i.e. June 10, 2026. Therefore, the deadline for the Capital Markets Authority to announce its decision regarding referring the merger to the second stage investigation is August 7, 2026.”
A “Phase 2” investigation is a more in-depth review conducted by the CMA if the initial Phase 1 investigation concludes that a proposed deal may result in a “significant reduction in competition”.
The CMA on Tuesday also issued a “call for comment” to allow interested parties to provide “any preliminary views on the impact the deal could have on UK competition”, explaining: “This call for comment is the first part of the CMA’s information gathering process. To assist it in this assessment, the CMA is inviting comments on the deal from any interested party.”
The proposed mega-deal is under regulatory scrutiny across North America and Europe, with several industry players, ranging from competitors, writers, directors, actors and cinema operators, expressing concerns about the impact the combined force could have on the entertainment sector and consumers. There are also challenges brewing from several states.
“If this merger goes through, I think it will be the death of our industry,” a television writer recently warned at an emotional town hall in Beverly Hills, California. The Golden State as well as New York and other state attorneys general are understood to be preparing a lawsuit to block the merger after California Attorney General Rob Bonta previously promised to look into the deal.
