Paramount Skydance is acquiring Warner Bros Discovery in a $110 billion deal, marking one of the largest media mergers to date [1, 2, 3]. The UK Competition and Markets Authority (CMA) opened a formal investigation on June 9-10, 2026, to examine potential harm to competition in the UK market [1, 3]. The CMA must decide by August 7 whether to move to a more detailed phase 2 investigation that could push the deal’s completion past the third quarter of 2026 [1, 3].
The European Union began initial vetting of the deal on June 10 under its Foreign Subsidies Regulation (FSR) and traditional merger rules. The EU set a July 14 deadline for the FSR review, with an earlier deadline for traditional merger scrutiny [2].
Middle Eastern sovereign funds provided critical financial backing for Paramount’s bid, contributing approximately $24 billion in equity financing. Notable investors include Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, and Abu Dhabi's L’Imad Holding [2]. Paramount also paid a $2.8 billion breakup fee to outbid Netflix in the February auction for Warner Bros Discovery [1]. Larry Ellison, co-founder of Oracle and Paramount’s major investor, personally guaranteed $40 billion in financing for the transaction [1].
Paramount CEO David Ellison pledged to sustain high production levels after the merger, promising at least 30 films annually across both studios [1]. Despite that, the deal faces strong opposition within the entertainment industry and from US politicians. More than 1,000 film and TV professionals signed an open letter in April warning "The integrity, independence and diversity of our industry would be grievously compromised. Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement" [1]. US Senator Elizabeth Warren called the merger "an antitrust disaster threatening higher prices and fewer choices for American families" [1].
Several US states, including California and New York, are preparing lawsuits to block the merger amid concerns over competition, diversity, and potential job losses [3].
A crucial next step awaits on August 7, when the UK CMA will announce whether it will escalate its investigation to phase 2, potentially delaying the deal’s closing beyond Q3 2026 [1, 3].
