Britain’s competition regulator, the Competition and Markets Authority, has launched an investigation into David Ellison’s Paramount Skydance’s proposed $110 billion takeover of Warner Bros. Discovery.
The deadline for the CMA to announce its decision on the first stage of the investigation and whether to approve the transaction or refer the merger for further investigation is August 7, but could be extended.
In the first stage of its investigation, the CMA will look into whether the deal could undermine the competitiveness of industries or regions in the UK, Reuters reported.
This announcement will be made following the conclusion of the information gathering process. The CMA asked interested parties to submit their views on the impact of the deal on competition in the UK, and was open for comments from April 13 to 27.
In February, Paramount outbid Netflix after a long bidding war to acquire Warner Bros., bringing together major studios and networks such as CNN and CBS to compete more aggressively with the streaming platform.
The deal is already the subject of regulatory scrutiny across North America and Europe, with industry groups representing writers, actors, filmmakers and theater operators raising concerns about its impact on the entertainment industry and consumers.
Last week, officials told Reuters California, New York and other U.S. states were preparing lawsuits to block the deal. On Friday, a spokesperson for California Attorney General Rob Bonta’s office said the California investigation remains active, but declined further comment.
