Key Moments
- Paramount Skydance Corp’s proposed $110 billion acquisition of Warner Bros Discovery is being examined under the EU’s Foreign Subsidies Regulation.
- The European Commission has until July 14 to either approve the deal or open an in-depth 90 working day investigation.
- Saudi Arabia’s PIF, Abu Dhabi-based L’imad Holding Company, and Qatar Investment Authority are backing the transaction, which is also undergoing review under EU merger rules.
EU Scrutiny of Foreign-Backed Media Megadeal
Paramount Skydance Corp’s planned $110 billion acquisition of Warner Bros Discovery has drawn formal scrutiny from the European Union over potential foreign subsidies, according to a filing by the European Commission.
The U.S. entertainment company submitted its request for clearance under the EU’s Foreign Subsidies Regulation, a framework aimed at addressing potentially distortive foreign state support, on Tuesday.
Regulatory Timetable and Possible Outcomes
The European Commission, which serves as the EU’s competition regulator, has set a deadline of July 14 to decide whether to grant approval or to escalate the case into a more extensive review. If it opts for a deeper probe, the matter would move into a full-scale investigation lasting 90 working days.
| Regulatory Step | Description |
|---|---|
| Initial review deadline | Decision by July 14 on whether to clear the transaction or launch an in-depth probe |
| Possible extended investigation | Full-scale investigation of up to 90 working days if concerns justify further scrutiny |
Backers and Parallel Merger Review
The takeover is backed by Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi-based L’imad Holding Company, and Qatar Investment Authority (QIA). Alongside the foreign subsidies assessment, the transaction is also being evaluated under the EU’s conventional merger control regime.
The review focused on foreign subsidies is expected to be less demanding than the merger analysis, where competition concerns are more prominent. In the merger review, sources have previously told Reuters that the companies may need to propose remedies such as selling a children’s channel to address EU competition issues.
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