The British government has indicated it may step in to review or challenge Paramount Skydance’s proposed $110 billion acquisition of Warner Bros. Discovery, citing concerns over media ownership concentration and the need to preserve a diversity of voices in the news and entertainment landscape.
U.K. Culture Secretary Lisa Nandy announced that her department has formally notified the current and prospective owners of Warner Bros. Discovery that she is considering intervention in the deal. Nandy emphasized the importance of maintaining a sufficient plurality of viewpoints in news media and ensuring that control of major media enterprises is not concentrated in too few hands.
The merger, which would unite the assets of Paramount Skydance and Warner Bros. Discovery, is already under review by the U.K.’s competition regulator. The U.K. Competition and Markets Authority is expected to outline the next phase of its investigation in early August.
Paramount Skydance has rejected concerns that the transaction threatens media plurality in Britain, stating it is confident the merger does not create issues related to media ownership diversity in the country.
In the United States, the deal has already received clearance from the United States Department of Justice, which concluded that the merger is unlikely to harm competition or consumers. However, the transaction continues to face scrutiny from several state attorneys general, including those in California and New York, who are reviewing its potential impact.
If completed, the merger would bring together some of the entertainment industry’s most recognizable assets under a single corporate umbrella. Paramount Skydance owns the CBS network, multiple cable channels and the Paramount+ platform, while Warner Bros. Discovery controls brands including CNN, Max and iconic franchises such as Batman. In the U.K., the combined company would also oversee Channel 5, one of the country’s major public service broadcasters.
The proposed acquisition has sparked opposition within Hollywood, with more than 5,500 actors, directors, producers and screenwriters signing an open letter criticizing the merger. Critics argue that further industry consolidation could reduce opportunities for content creators, limit competition among buyers of film and television projects, lead to job losses and ultimately increase costs for consumers.
Paramount Skydance, led by David Ellison, has defended the transaction, arguing it will strengthen the combined company and support greater investment in theatrical releases. Ellison has pledged to release 30 movies annually in cinemas as part of his vision for the merged entertainment giant.