UK watchdog to look at Paramount’s $110bn takeover of Warner Bros Discovery

Deal to create a streaming and sports powerhouse will be scrutinised by Competition and Markets Authority

The UK competition watchdog has opened an investigation into Paramount Skydance’s $110bn (£82bn) takeover of Warner Bros Discovery (WBD).

The deal will create a media powerhouse controlling assets including the Paramount and HBO Max streaming services, Channel 5 and TNT Sports, which broadcasts Champions League, Premier League and the Olympics, the Hollywood studios behind franchises including Superman, Batman and Top Gun, as well as HBO, home to shows including Game of Thrones, The White Lotus and Succession.

The Competition and Markets Authority (CMA) said it has opened an investigation to ascertain whether the tie-up will result in a “substantial lessening of competition” in the UK.

The CMA said it will decide by 7 August whether the deal warrants a more in-depth phase 2 investigation, which can take up to five months.

In February, Paramount beat Netflix to take over WBD, bringing an end to a high-stakes bidding war between the media companies.

Netflix refused to increase its bid, saying that at the price offered for WBD it was “no longer financially attractive” to continue the bidding war.

Paramount, which paid a $2.8bn fee to Netflix for breaking the streamer’s $82.7bn deal for WBD’s streaming and studio assets, is facing regulatory scrutiny and a backlash from critics worried about the impact on Hollywood.