Paramount-WBD deal to be investigated by UK regulator

Paramount and Warner Bros. Discovery’s (WBD) $110bn deal is to be investigated by the UK’s competition authority.

The Competition and Markets Authority (CMA) said it is “seeking views on the anticipated acquisition” of WBD by Paramount, with the invitation for comment open from 13 April - 27 April.

The first phase will “allow interested parties to submit to the CMA any initial views on the impact that the transaction could have on competition in the UK,” the regulator said.

The CMA added it had not yet launched a “formal investigation” into the transaction but will explore industry opinion on its implications as the “first part” of its “information-gathering process”.

The deal, which was agreed in February following a protracted takeover battle with Netflix, has already prompted Paramount chief exec David Ellison to meet UK culture secretary Lisa Nandy.

A Paramount acquisition would see streamers Paramount+ and recently launched HBO Max coming under the same ownership, as well as UK broadcaster 5 and a host of production assets.

European Union (EU) officials have already indicated they are looking at the impact of the deal on creatives, while more than 1,000 US producers, writers and actors signed an open letter opposing the acquisition.

JJ Abrams, David Fincher, Ben Stiller and Bryan Cranston were among those named, arguing that the Paramount-WBD combination would “threaten the sustainability of the entire creative community.”

They added: “We are deeply concerned by indications of support for this merger that prioritise the interests of a small group of powerful stakeholders over the broader public good.

“The integrity, independence, and diversity of our industry would be grievously compromised.”

The letter was organised by unions and collectives including the Writers Guild of America and the Future Film Coalition.