UK Threatens to Throw New Hurdle in Front of $110 Billion Paramount-Warner Megamerger — One That Could Cost Millions

Jae C. Hong/AP photo

The British government signaled Tuesday it could intervene in Paramount Skydance’s planned $110 billion takeover of Warner Bros. Discovery, opening a potentially significant and costly new regulatory battle over one of the entertainment industry’s biggest mergers.

British Culture Secretary Lisa Nandy told CNN Tuesday she was “minded to intervene” in the proposed acquisition, citing concerns over the concentration of ownership of major news organizations, though she stressed she has not yet made a final decision.

“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,” Nandy said in a statement to the network.

She added that the government was considering intervention on public interest grounds, including whether the merger would preserve a “sufficient plurality of views in news media” and a “sufficient plurality of persons with control of the media enterprises.”

The companies have one week to respond before any next steps are taken.

If the government proceeds, Britain’s media regulator, Ofcom, would examine the deal alongside an existing review by the Competition and Markets Authority.

Although Paramount said it expects to close the acquisition in the third quarter of 2026, having already cleared regulatory approval in the U.S., any intervention could delay proceedings.

CNN’s chief media analyst Brian Stelter also noted in his Reliable Sources newsletter that the move may also increase the price tag of the transaction.

Under the merger agreement, if the deal does not close by the end of the third quarter, the consideration increases by 25 cents per share for each additional quarter before approval. This, Stelter pointed out, would add roughly $627 million every three months, or about $7 million per day, to the overall cost.

In a statement to CNN, a Paramount spokesperson said: “We are grateful for the continued constructive engagement with all interested government bodies and relevant authorities, including in the UK. We are confident that our proposed transaction does not pose any media plurality issues in the UK and remain confident in our stated transaction timeline.”

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