UK may intervene in $110-billion Paramount-Warner Bros Discovery deal

LONDON — Britain said on Tuesday it could intervene in Paramount Skydance Corporation's proposed takeover of Warner Bros Discovery, potentially holding up the $110-billion deal after the US and China gave it the green light.

The move is the first step in a process that could see the deal referred to the UK's antitrust regulator, which made headlines in 2023 when it blocked Microsoft's $69-billion acquisition of "Call of Duty" maker Activision Blizzard to the fury of the two US companies. It later changed its mind after Microsoft amended its acquisition plan.

Britain's possible intervention comes as the global deal has already been cleared by the United States, China, Australia, Germany, France and Saudi Arabia.

EU antitrust regulators are now assessing the deal, with Paramount set to offer remedies this week to address competition concerns which will likely help them secure EU approval for the deal.

Any lengthy hold up in Britain could have wider ramifications.

To signal confidence in winning swift regulatory approval, Paramount has offered Warner Bros Discovery shareholders a "ticking fee" of 25 cents a share for every quarter the deal does not close beyond September 30. That works out to roughly $650 million in cash each quarter.

Paramount said on Tuesday it was confident the deal did not pose any issues on media plurality and it remained confident in its stated timeline. Warner did not immediately respond to a request for comment.

UK sets July deadline for responses

Britain's culture minister Lisa Nandy, who set a July 6 deadline for the companies to respond, said in a statement: "I am mindful of the need to reach a final decision in a timely manner, and I will endeavor to do so as appropriate."

Nandy said while the deal was global in nature it could have an impact on the provision of news and on-demand services in Britain.

Paramount owns Britain's Channel 5, a free-to-air broadcaster which broadcasts news programs, while Warner owns CNN International.

Other businesses that the UK government said could be affected include TNT Sports, Cartoon Network, Nickelodeon, as well as Paramount+ and HBO Max.

Nandy said current legislation does not cover on-demand services as it was drafted when viewing was largely via broadcast television, adding that she would introduce secondary legislation if needed.

Paramount+ and HBO Max command only a small share of the UK streaming market. A report by UK media regulator Ofcom in 2025 grouped Paramount+ with other services such as Discovery+ and Hayu in an "other" bucket that held only 6% of the share of the streaming market, compared with Netflix's 59%.

HBO Max, which launched in the UK in March, likely holds a similarly thin slice.

After the companies respond, the culture minister will decide whether to issue a formal public interest intervention notice, which if she does, would trigger reviews by Ofcom and the UK Competition and Markets Authority.

The regulators have up to 40 days to report back. Once they do, Nandy would then decide whether to clear the deal or refer it for a further investigation, which can last up to 24 weeks.

If concerns are identified, the companies could seek to address them by offering remedies such as divestments or commitments to protect editorial independence. — Reuters