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The UK government is likely to intervene in Paramount Skydance’s takeover of Warner Bros. Discovery for $111 billion.
UK Secretary of State for Culture, Media and Sport Lisa Nandy issued a statement on Tuesday saying: “Following engagement with parties and independent research, my department has today written to the current and proposed owners of Warner Bros Discovery on my behalf to inform them that I am considering intervening.”
This indicates that a more formal procedure will be followed. Nandy noted that the combined entity would own Channel 5, TNT Sports, Cartoon Network, Nickelodeon, CNN International, Paramount+ and HBO Max, and suggested that concerns about consolidation in the video on demand market are part of her concerns.
It also noted “the need, to the extent reasonable and practicable, for a plurality of viewpoints in the news media in every news media market.”
Nandy said the companies have until July 6 to respond to their concerns, and that they have not made a final decision on whether the government will seek legal action.
A Paramount Sky Dance spokesperson said in a statement: Hollywood Reporter: “We are grateful for the continued constructive engagement with all interested government bodies and relevant authorities, including in the UK. We are confident that our proposed transaction does not pose any multimedia issues in the UK and we remain confident in our announced transaction timeline.”
Paramount Skydance is awaiting approval from the United Kingdom and the European Union for its deal, after obtaining approval from the US Department of Justice. However, a group of states, led by California, has suggested they might file suit to try to stop the merger, although no such suit has been filed yet.
Paramount said it believes it can close the deal by early fall, and has agreed to pay a timing fee to WBD shareholders if the deal does not close by September 30.
