UK Culture Secretary Lisa Nandy announced on Tuesday her intention to request British media and competition watchdogs to examine Paramount’s proposed $110 billion acquisition of Warner Bros Discovery, focusing on media plurality and market competition, as reported by The Guardian.
The massive regulatory review targets a transaction that would unify major entertainment assets, including Channel 5, CNN, TNT Sports, and the streaming platforms Paramount+ and HBO Max, under a single global media powerhouse.
Nandy explained that her department has formally contacted the current and proposed owners of Warner Bros Discovery to signal her planned intervention due to public interest considerations.
"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," said Nandy.
The cabinet minister emphasized that her primary regulatory focus remains on protecting national broadcasting standards and ensuring a diverse range of services for domestic television consumers.
"I am conscious that the proposed acquisition is global in nature.
In reaching this decision, my focus has been, and will remain, on the UK public interest and the range of services available to UK audiences, including Channel 5, TNT Sports, Cartoon Network, Nickelodeon, and CNN International, as well as Paramount+ and HBO Max," said Nandy.
To address modern viewing habits, Nandy noted that current legislative frameworks lack provisions for digital streaming platforms, prompting her to consider introducing secondary legislation to update the Enterprise Act 2002.
"As the legislation was drafted at a time where viewing was largely via broadcast linear channels, it does not cover the effect of a merger on streaming or video-on-demand services," said Nandy.
The proposed legislative update would explicitly grant the communications regulator Ofcom the authority to assess the market impact of streaming services during this and future media consolidations.
"I believe this ought to be able to be considered in relation to this and all future media mergers given the role on-demand viewing now plays in the market," said Nandy.
Both Paramount and Warner Bros Discovery have been given an official deadline of July 6 to submit their formal responses to the British government regarding the potential regulatory intervention.
"It is important to note that I have not taken a final decision on intervention at this stage," said Nandy.
The intervention process comes amid shifting international regulatory landscapes, with United States authorities having already cleared the transaction and European Union regulators nearing a decision deadline on July 7.
