The British government has signaled its likely intervention in Paramount Skydance’s proposed $110 billion takeover of Warner Bros.

Discovery.

This development is significant as it could introduce a new hurdle for the merger, which has already cleared regulatory reviews in several other major markets.

Lisa Nandy, the U.K.’s Secretary of State for Culture, Media and Sport, informed Parliament of her intention to intervene, citing concerns over media plurality.

In a written statement, Nandy explained that her department has engaged with the involved parties and conducted independent research, leading to the decision to inform the current and proposed owners of Warner Bros.

Discovery of her inclination to intervene.

Nandy outlined two primary reasons for the potential intervention.

First, she emphasized the need for a sufficient plurality of views in news media within the U.K.

market.

Second, she highlighted the necessity for a sufficient plurality of persons controlling media enterprises, including on-demand program services, for every different audience in the U.K.

These concerns stem from the potential impact on U.K.

television audiences, as the merger would bring a wide array of media assets under single ownership.

These assets include broadcaster Channel 5, channels such as Cartoon Network, Nickelodeon, and CNN International, as well as streaming platforms Paramount+, TNT Sports, and HBO Max.

Nandy also indicated a broader effort to update public interest rules to better reflect the growing popularity of streaming and video-on-demand services.

She stated her belief that these considerations should apply to this merger and all future media mergers, given the current role of on-demand viewing.

Should Nandy decide to intervene, the next steps would involve media regulator Ofcom assessing the public interest considerations and the Competition and Markets Authority (CMA) evaluating the merger's impact on competition.

Following these reports, Nandy would then decide whether to refer the matter for a more detailed investigation by the CMA under section 45 of the Enterprise Act.

The parties involved have been given until July 6 to submit further representations in writing.

A Paramount Skydance spokesperson expressed confidence in the transaction, stating, “We are confident that our proposed transaction does not pose any media plurality issues in the U.K.

and remain confident in our stated transaction timeline.” The deal has already been approved by the U.S.

Justice Department and regulators in China, Australia, Germany, France, and Saudi Arabia, with the European Union also expected to give its approval if certain remedies, such as ending the Paramount-Universal distribution joint-venture UIP, are implemented.