The British government has indicated it will likely intervene in Paramount Skydance’s proposed $110 billion takeover of Warner Bros. Discovery.
Lisa Nandy, the U.K.’s Secretary of State for Culture, Media and Sport, sent a written statement to Parliament on Tuesday in which concerns about “maintaining media plurality” were cited:
“Following engagement with the parties and independent research, my department has today written to the current and proposed owners of Warner Bros. Discovery on my behalf to inform them that I am minded to intervene.”
She says there are several reasons for this, including “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.”
The other key concern is “the need, in relation to every different audience [in the U.K.], for there to be a sufficient plurality of persons with control of the media enterprises, or the enterprises providing on-demand program services or both, serving that audience.”
Under the merger, broadcaster Channel 5 and channels like Cartoon Network, Nickelodeon and CNN International and streamers like Paramount+, TNT Sports and HBO Max would all be brought under the same ownership.
She adds she has invited “further representations in writing from the parties” with a response due next Monday. If she decides to intervene, then media regulator Ofcom and the Competition and Markets Authority would both need to run assessments and write reports.
Source: Variety
