The UK’s competition regulator is now officially looking over one of Hollywood’s largest-ever deals. The Competition and Markets Authority (CMA) has officially opened a merger inquiry into Paramount’s $110bn acquisition of Warner Bros. Discovery. It’s a big deal. Of course, it’s also hardly a surprise.
The CMA is assessing whether the deal will result in “a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.” This will be determined during Phase 1 of the investigation, which is slated for completion by Aug. 7.
There’s more, of course. If that threshold is met, the watchdog can move to a deeper Phase 2 investigation which could take more than five months. This type of deal doesn’t usually get a free pass.
The merger has been on the cards for a while.
Paramount eventually came to an agreement with WBD for $31 a share after a drawn-out negotiation and bidding war in the winter. The deal was unanimously approved by both companies’ boards. It is slated to close in Q3 2026, when all regulatory approvals are in place.
The matched-up companies have both tried to spin this as a consumer-friendly thing. Together, Paramount and WBD would jointly hold a host of major franchises: Game of Thrones, Mission: Impossible, Harry Potter, Top Gun, the DC Universe, and SpongeBob SquarePants. That is the problem.
Over 1,400 actors, directors, and filmmakers have already signed an open letter stating they are “deeply concerned by indications of support for this merger that prioritise the interests of a small group of powerful stakeholders over the broader public good.”
There’s more, of course. If that threshold is met, the watchdog can move to a deeper Phase 2 investigation. A investigation which could take more than five months. This type of deal doesn’t usually get a free pass.
The merger has been on the cards for a while. Paramount eventually came to an agreement with WBD for $31 a share. This was after a drawn-out negotiation and bidding war in the winter. The deal was unanimously approved by both companies’ boards and is slated to close in Q3 2026, when all regulatory approvals are in place.
