UK ‘minded to intervene’ in Paramount-WBD deal

Paramount’s acquisition of Warner Bros Discovery (WBD) is likely to face further scrutiny in the UK after the country’s culture secretary said she is “minded to intervene” in the $111bn (£84bn) deal.

Lisa Nandy made a written statement to parliament today, in which she noted her capacity to intervene when necessary in a merger that affects the public interest, citing concerns over plurality of views in news media and of people in control of media enterprises.

The statement said the Department for Culture, Media and Sport has written to both Paramount and WBD on her behalf to inform them she is minded to intervene on the following public interest grounds:

• “The need for, to the extent that it is reasonable and practicable, a sufficient plurality of views in news media in each market for news media in the United Kingdom or a part of the United Kingdom.”
• “The need, in relation to every different audience in the United Kingdom, or in a particular area or locality of the United Kingdom, for there to be a sufficient plurality of persons with control of the media enterprises, or the enterprises providing on-demand programme services or both, serving that audience.”

Nandy added that while the proposed acquisition “is global in nature”, her focus is on UK public interest, noting WBD and Paramount brands including Channel 5, TNT Sports, Cartoon Network, Nickelodeon, and CNN International, as well as Paramount+ and HBO Max.

The statement confirmed that letters to both parties and other relevant updates would be published on gov.uk, the UK government website.

Nandy added that she had “not taken a final decision on intervention at this stage”, and has given Paramount and WBD until July 6 to respond to her letter.

Should the intervention go ahead, Ofcom would then assess the merger and report back to DCMS on public-interest considerations, while the Competition and Markets Authority (CMA) would assess and report on the merger’s impact on competition.

Nandy would then review those reports and decide whether to refer the matter for a more detailed CMA investigation. “I am mindful of the need to reach a final decision in a timely manner, and I will endeavour to do so as appropriate,” wrote Nandy.

The CMA, a non-ministerial government department, launched its own enquiry into the merger earlier this month, with a deadline of August 7 for whether it decides to proceed with a second phase of investigation.

Paramount announced its acquisition of WBD for $110bn in February this year.

The merger has been approved by the US department of justice, as well as regulatory bodies in Canada, China, and Australia. But it faces further regulatory approvals from the European Commission and other international territories.

Last week, it was reported that the deal is set to be approved by European Union regulators, but Paramount may have to pull out of UIP, its joint distribution venture with Universal Pictures, to obtain that approval.

A version of this story first appeared on Broadcast sister title Screen