June 9 (Reuters) – Britain’s competition regulator said on Tuesday it has formally started its review of Paramount Skydance’s planned $110 billion acquisition of Warner Bros Discovery, after ending the first part of its information gathering process.
The first phase of the review has a deadline of August 7, after which the Competition and Markets Authority (CMA) will decide whether to clear the deal or refer it for a more in-depth probe.
Here are details on the deal and the subsequent review:
• Under the so-called phase 1 enquiry, the CMA will look into whether a deal may harm competitiveness in an industry or region within the UK.
• Its invitation to comment, where interested parties had a chance to tell the regulator how the proposed transaction would impact competition, had run from April 13 until April 27.
• Paramount outbid Netflix in February after a drawn-out bidding war to buy Warner Bros, combining major studios and networks such as CNN and CBS in an effort to compete with streaming platforms more aggressively.
• The deal has already received some regulatory scrutiny across North America and Europe, as industry players including writers, actors, filmmakers and cinema operators voiced concerns about the impact it could have on the entertainment industry and consumers.
• Last week, sources told Reuters that California, New York and other U.S. states were preparing a lawsuit to block the deal.
• “Today’s milestone is consistent with our expected timeline. We look forward to continuing to work constructively with the Competition and Markets Authority and all regulatory agencies as they advance their review process,” a Paramount spokesperson said in an emailed response to Reuters.
• Warner Bros declined to comment.
(Reporting by Prerna Bedi in Bengaluru; additional reporting by Tuhina; Editing by Harikrishnan Nair and Devika Syamnath)
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