UK watchdog investigates Paramount’s $110bn Warner Bros Discovery takeover
10 reported
The UK Competition and Markets Authority has opened an investigation into Paramount Skydance’s $110bn (£82bn) takeover of Warner Bros Discovery. The deal would create a media powerhouse controlling assets including Paramount and HBO Max streaming services, Channel 5, TNT Sports, and major Hollywood studios. The CMA said it will decide by 7 August whether the deal warrants a more in-depth phase 2 investigation, which can take up to five months. The investigation aims to determine whether the tie-up will result in a “substantial lessening of competition” in the UK. The deal has also faced criticism from more than 1,000 film and TV industry professionals, including actors Mark Ruffalo, Kristen Stewart, Ben Stiller and Joaquin Phoenix, who signed an open letter protesting against it. US Senator Elizabeth Warren described the deal as “an antitrust disaster threatening higher prices and fewer choices for American families.”
What’s reported
The UK Competition and Markets Authority has opened an investigation into Paramount Skydance’s $110bn takeover of Warner Bros Discovery.
The CMA will decide by 7 August whether the deal warrants a more in-depth phase 2 investigation, which can take up to five months.
The investigation is to ascertain whether the tie-up will result in a “substantial lessening of competition” in the UK.
In February, Paramount beat Netflix to take over WBD, ending a bidding war; Netflix refused to increase its bid, saying it was “no longer financially attractive.”
Paramount paid a $2.8bn fee to Netflix for breaking the streamer’s $82.7bn deal for WBD’s streaming and studio assets.
More than 1,000 film and TV industry professionals signed an open letter in April protesting the deal, saying “the integrity, independence and diversity of our industry would be grievously compromised.”
US Senator Elizabeth Warren described the deal as “an antitrust disaster threatening higher prices and fewer choices for American families.”
Paramount CEO David Ellison told a movie theatre owners convention in April he promised to continue making a minimum of 30 films a year across the Paramount and Warner Bros film studios.
Ellison’s deal for WBD is backed by a $40bn personal guarantee by his father, Oracle co-founder Larry Ellison.
Job cuts appear inevitable, with $3bn in cost savings announced after the merger of Skydance and Paramount last year, and a further $6bn in post-WBD takeover synergies revealed in filings.
Key figures
David Ellison, chief executive of Paramount
Larry Ellison, Oracle co-founder and father of David Ellison
Elizabeth Warren, US senator
Mark Ruffalo, actor
Kristen Stewart, actor
Ben Stiller, actor
Joaquin Phoenix, actor
Sources: The Guardian
