UK Government ‘Minded to Intervene’ on Paramount-WBD Deal After Review

www.thewrap.com

U.K. Culture Secretary Lisa Nandy feels “minded to intervene” on the $110 billion Paramount-Warner Bros. Discovery merger due to its potential impact on British broadcasters and their audiences.

“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,” she said in a Tuesday statement. “I am mindful of the need to reach a final decision in a timely manner, and I ​will endeavor to do so as appropriate.”

Nandy has also given Paramount and WBD a week to respond to her concerns with a July 6 deadline, upon which her office will decide whether to go forward with a formal ​public interest intervention ⁠notice through Ofcom and the Competition and Markets Authority.

At that point, the U.K. regulators would have 40 days to provide their assessments before the Culture, Media and Sport department decides to either clear the merger or initiate further investigation. The companies would have the chance to remedy any official concerns, however.

“We are grateful for the continued constructive engagement with all interested government bodies and relevant authorities, including in the U.K.,” Paramount responded in a Tuesday statement to TheWrap. “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.”

Paramount CEO David Ellison notably met with Nandy and other European leaders back in January when Netflix was still in the mix. Meanwhile, the European Commission has set an initial deadline of July 7 to decide whether to clear or order a Phase 2 investigation and a July 14 deadline on its review of the foreign investment in the deal.

Thus far, Australia, China, France, Germany, Saudi Arabia and the U.S. have approved the global merger.