The UK government has indicated it could intervene in Paramount-Skydance Corp (NASDAQ:PSKY)'s proposed $110 billion acquisition of Warner Bros Discovery Inc (NASDAQ:WBD, XETRA:J5A), adding another layer of regulatory scrutiny to the media merger.
UK Culture Secretary Lisa Nandy said Tuesday she is "minded to intervene" in the transaction, citing concerns over media plurality and the concentration of ownership in the news sector.
"Following engagement with the 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 minded to intervene," Nandy said in a statement.
She added that any potential intervention would be based on public interest considerations, including ensuring "a sufficient plurality of views in news media" and "a sufficient plurality of persons with control of the media enterprises." Nandy noted she has not yet made a final decision, and the companies have been given a week to respond.
If the government proceeds, UK media regulator Ofcom would conduct a public interest assessment alongside an ongoing review by the Competition and Markets Authority (CMA), which is examining the deal's potential impact on competition. The CMA is expected to announce the next steps in its investigation in early August.
Paramount-Skydance said it remains confident the transaction does not raise media plurality concerns in the UK.
“We are grateful for the continued constructive engagement with all interested government bodies and relevant authorities, including in the UK,” a Paramount-Skydance spokesperson said in a statement to media outlets.
“We are confident that our proposed transaction does not pose any media plurality issues in the UK and remain confident in our stated transaction timeline.”
The transaction has already received clearance from the US Department of Justice, which concluded earlier this month that the deal was not likely to harm competition or American consumers. However, it continues to face review from several US state attorneys general, including those in California and New York.
Paramount-Skydance has said it expects the acquisition to close during the third quarter of 2026.
Shares of Paramount-Skydance traded down 1.3% at about $9.70 on Tuesday morning.
