London — UK Culture Secretary Lisa Nandy has signaled she may formally intervene in Paramount Skydance's proposed $110 billion takeover of Warner Bros Discovery, raising the prospect of a transatlantic regulatory clash over the blockbuster media merger.
In a statement Tuesday, Nandy confirmed she had written to both companies, stating she is “minded to intervene” on public interest grounds. She specifically cited the need for “sufficient plurality of views in news media” and “sufficient plurality of persons with control of the media enterprise” in UK markets.
The merger would unite a sprawling portfolio of media assets under a single corporate umbrella, including CBS, CNN, HBO, TNT, and TBS. The US Department of Justice's Antitrust Division approved the deal earlier this month, concluding it “is not likely to result in harm to competition or American consumers” and would in fact deliver “benefits for American consumers and workers.”
Nandy, however, argued that British law grants her authority to scrutinize the transaction under the Enterprise Act 2002. Her focus is on how the deal would affect services available to UK audiences, including TNT Sports, Cartoon Network, and CNN International.
“Under the Enterprise Act 2002, I can intervene if I have reasonable grounds to suspect that arrangements are in contemplation which, if carried into effect, will result in the creation of a relevant merger situation and I believe that one or more public interest considerations under the Act may be relevant,” she said.
The letters demand responses from both parties by Monday. Nandy emphasized she has “not taken a final decision” on intervention. The Hill has reached out to Paramount and Warner Bros for comment.
Paramount, controlled by Larry and David Ellison, secured the deal in February after Warner Bros' board deemed its $30-per-share offer “superior” to Netflix's $72 billion bid. The transaction is expected to close in the third quarter of this year.
This potential regulatory roadblock comes amid broader debates over media consolidation and its impact on democratic discourse. The UK's move echoes concerns raised in other contexts, such as divided government threatening to paralyze congressional oversight in the US.
Nandy's intervention could set a precedent for how national governments assert control over global media mergers, particularly those involving news organizations with significant public influence. The outcome may also influence debates about government stakes in major tech and media companies.
