UK Culture Secretary signals intervention in Paramount's $110bn Warner Bros deal on plurality grounds

UK minister flags plurality concerns

Britain's Culture Secretary Lisa Nandy told Parliament on Tuesday that she is "minded to intervene" in Paramount Skydance Corp's proposed $110 billion takeover of Warner Bros Discovery, a deal that would combine two of Hollywood's remaining five major studios. In a written statement, she said her department had written to the current and proposed owners of WBD to inform them of the 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's assessment, she said, focuses on whether the merged group would offer "a sufficient plurality of views in news media" and how the deal would affect UK audiences. The combined entity would control assets including Channel 5, TNT Sports, Cartoon Network, Nickelodeon, CNN International, and streaming platforms Paramount+ and HBO Max.

A deal with global clearances, but local friction

The UK move stands in contrast to approvals already granted by the United States, China, Australia, Germany, France, and Saudi Arabia. EU antitrust regulators are still evaluating the merger, with Paramount expected to offer remedies this week to address competition concerns, likely clearing the path for European approval. A group of US states led by California has reportedly suggested it may file suit to block the deal, but no formal action has been taken.

Paramount agreed to buy Warner Bros Discovery in February after outbidding Netflix in a lengthy contest. The takeover would see Warner's properties, including DC Studios, the Harry Potter franchise, and hit series like Succession and The White Lotus, join Paramount's CBS, Mission: Impossible, and Star Trek libraries, reshaping the media landscape.

The ticking fee clock

To reassure investors, Paramount has promised WBD shareholders a "ticking fee" of 25 cents per share for each quarter the deal extends beyond 30 September. That sum equates to roughly $650 million every three months. Nandy has given the companies until 6 July to respond to her concerns.

I am mindful of the need to reach a final decision in a timely manner, and I will endeavour to do so as appropriate.

A Paramount Skydance spokesperson told The Hollywood Reporter:

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.

UK on-demand services under the microscope

Nandy noted that current broadcasting legislation, drafted when linear TV dominated, does not adequately cover on-demand viewing. She indicated she would introduce secondary legislation if necessary to expand public interest rules to streaming services. A 2025 Ofcom report grouped Paramount+ with Discovery+ and Hayu in an "other" category that collectively held just 6 per cent of the UK market, far behind Netflix's 59 per cent. HBO Max, which launched in the UK in March, is expected to hold a similarly small share.

What comes next

If Nandy proceeds to a formal intervention, the government is likely to task media regulator Ofcom and the Competition and Markets Authority with a deeper review, echoing the CMA's 2023 block of Microsoft's $69 billion Activision Blizzard takeover before a revised deal was approved. The minister's July 6 deadline will be the next milestone in a deal that, for now, hangs on a single word: "minded."