UK ‘minded to’ intervene in Paramount’s $110bn takeover of Warner Bros Discovery

Lisa Nandy to ask regulators to assess mega-merger involving Channel 5, CNN and TNT Sports on grounds of media plurality and competition

The UK culture secretary, Lisa Nandy, intends to ask the British media and competition watchdogs to examine Paramount’s $110bn (£85bn) acquisition of Warner Bros Discovery.

The WBD takeover deal will create a media powerhouse controlling assets including: the Hollywood studios behind franchises including Superman, Batman and Top Gun; the UK’s Channel 5; news channel CNN; TNT Sports, which broadcasts Champions League, Premier League and the Olympics; and the Paramount+ and HBO Max streaming services.

Nandy said on Tuesday that she was “minded to” task the communications regulator Ofcom with looking at the impact of the mega-merger on media plurality, and request the Competition and Markets Authority (CMA) to investigate whether the proposed deal creates competition issues.

“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, in a written ministerial statement.

“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.”

Nandy said that investigating public interest issues regarding streaming is not covered in the Enterprise Act 2002, but that she may legislate to allow Ofcom to investigate the merger’s impact on on-demand services.

“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,” she said. “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.”

Nandy said that if she decides to intervene she will bring forward secondary legislation to include streaming and on-demand services in the Enterprise Act.

The culture secretary has given Paramount and WBD until 6 July to respond. “It is important to note that I have not taken a final decision on intervention at this stage,” she said.

If Nandy decides to intervene she will then issue a public interest intervention notice, which starts an investigation process of up to 40 days.

Last week, it was reported that European Union regulators were likely to approve Paramount’s takeover, provided the company accepts certain remedies, which are being worked out between the companies and the European Commission.

The commission has until 7 July to either approve the deal or open an in-depth investigation. The deal gained approval from the US Department of Justice earlier this month .