Britain’s Competition and Markets Authority (CMA) has formally opened a probe into the David Ellison-led Paramount’s proposed $111 billion takeover of Warner Bros. Discovery, the merger watchdog said on Tuesday.
In a statement, the CMA set an initial deadline of Aug. 7 for a ruling on the Hollywood megadeal that would combine two major studios, two big news operations, streaming services and two portfolios of cable networks.
“The initial period of [the investigation will] … commence on the first working day after the date of this notice, ie on 10 June 2026,” the M&A authority said. “The deadline for the CMA to announce its decision whether to refer the merger for a phase 2 investigation is therefore 7 August 2026.”
A “phase 2” investigation is a more in-depth review conducted by the CMA if its initial phase 1 probe concludes that a proposed transaction may lead to a “substantial lessening of competition.”
The CMA on Tuesday also issued an “invitation to comment” to allow interested parties to submit “any initial views on the impact that the transaction could have on competition in the U.K.” It explained: “This invitation to comment is the first part of the CMA’s information-gathering process. To assist it with this assessment, the CMA invites comments on the transaction from any interested party.”
The proposed megadeal is receiving regulatory scrutiny across North America and Europe, with various industry players, ranging from competitors, writers, directors, actors and cinema operators, having expressed concerns about the impact that the merged powerhouse could have on the entertainment sector and consumers. There are also challenges brewing from several states.
“If this merger goes through, this will be the death of our industry, I believe,” a TV writer recently warned in an emotional town hall in Beverly Hills, California. The Golden State as well as New York and other state attorneys general are understood to be preparing a lawsuit to block the merger after California attorney general Rob Bonta previously promised to look into the deal.
