U.K. Official Signals Possible Intervention in Paramount’s Warner Bros. Discovery Acquisition

The British government is weighing whether to intervene in Paramount Skydance’s planned acquisition of Warner Bros. Discovery, with a senior cabinet official citing concerns over media ownership and diversity of viewpoints available to U.K. audiences. Lisa Nandy, the United Kingdom’s secretary of state for Culture, Media and Sport, announced Tuesday that she has informed both Paramount and Warner Bros. Discovery that she is “minded to intervene” in the proposed merger on public interest grounds. According to Nandy, her concerns center on whether the transaction would preserve a “sufficient plurality of views in news media” within U.K. markets and maintain “a sufficient plurality of persons with control of the media enterprise.” If completed, the acquisition would place several major media brands under the same corporate umbrella, including CBS, CNN, HBO, TNT and TBS. The announcement comes despite the deal already receiving approval from the U.S. Department of Justice’s Antitrust Division earlier this month. After reviewing the proposed acquisition, the Justice Department concluded the transaction was not expected to reduce competition or harm American consumers. Instead, the department said its review found that the merger would provide benefits for American consumers and workers. While U.S. regulators have signed off on the transaction, Nandy emphasized that British law gives her the authority to examine the deal separately based on its potential impact within the United Kingdom. In her statement, she explained that her review is focused specifically on how the acquisition could affect services available to British audiences. Among the networks she identified were TNT Sports, Cartoon Network and CNN International. “Under the Enterprise Act 2002 (‘the Act’), I can intervene if I have reasonable grounds to suspect that arrangements are in contemplation which, if carried into effect, will result in the creation of a relevant merger situation and I believe that one or more public interest considerations under the Act may be relevant,” Nandy said. Her announcement does not automatically halt the transaction, and she stressed that no final determination has been made. Nandy said she has sent letters to both Paramount and Warner Bros. Discovery outlining her concerns and requesting additional information. The companies have been instructed to respond to her inquiries by Monday. She emphasized Tuesday that she “has not taken a final decision” on whether the government will formally intervene in the proposed acquisition. Representatives for Paramount and Warner Bros. Discovery have been contacted for comment, though no response was included at the time of the report. The proposed acquisition has been closely watched since Paramount emerged as the winning bidder earlier this year. According to the companies, Paramount, owned by Larry and David Ellison, prevailed over a competing $72 billion bid from Netflix in February. Warner Bros. Discovery’s board ultimately determined that Paramount’s offer was the stronger proposal, agreeing to a purchase price of $30 per share. The transaction would significantly reshape the media landscape by combining a broad portfolio of television networks and entertainment properties under a single corporate owner. Although the Justice Department determined the merger would not harm competition in the United States, the proposed acquisition still faces scrutiny abroad as British officials evaluate its potential impact on media ownership and news diversity in the United Kingdom. When Paramount announced the agreement in February, the company said it anticipated completing the acquisition during the third quarter of this year. For now, the deal remains on track while British officials continue reviewing whether additional action is warranted under the Enterprise Act. The companies’ responses to Nandy’s questions, due next week, could help determine whether the U.K. government ultimately decides to intervene before the acquisition is finalized. [READ MORE: Trump Demands Lower Gas Prices, Warns Retailers Against ‘Totally Illegal’ Price Gouging]