UMVA has learned that a major shake-up is brewing in the entertainment industry, with lawmakers from both sides of the Atlantic joining forces to scrutinize the massive merger between Paramount Skydance and Warner Bros. Discovery.
The $111 billion deal, which has already been approved by shareholders in the United States, is now facing a stern warning from European lawmakers who claim that the merger is still subject to a thorough antitrust review in Europe.
In a strongly worded letter sent to Paramount Skydance CEO David Ellison, five lawmakers made it clear that shareholder approval is not the final word on the matter, and that the merger still needs regulatory approval in both the United States and Europe.
"As elected Members of the United States Congress and the European Parliament, we wish to clarify that shareholder approval has no bearing on the rigorous and comprehensive review under all applicable competition, national security, editorial independence and media and cultural plurality frameworks that this transaction must now undergo," the letter reads.
The letter, signed by Reps. Sam Liccardo (D-CA) and Deborah Ross (D-NC) alongside European MPs Nathalie Loiseau, Brando Benifei, and Andreas Schwab, warns that the merger could substantially lessen competition across interconnected markets, reducing consumer choice and driving up prices.
The merger is also raising red flags over foreign investment, with lawmakers expressing concern that the combined company will be majority-owned by investors from the United Arab Emirates, Qatar, and Saudi Arabia.
Paramount has maintained that the foreign investors will not hold board seats or voting shares in the combined entity, but the lawmakers remain skeptical, and are urging regulators to take a closer look at the deal.
The outcome of the merger, which is expected to close by the third quarter of 2026, now hangs in the balance as regulators in both the United States and Europe continue to scrutinize the deal.
As the stakes grow higher, one thing is clear: the fate of the Paramount-WBD merger will be decided by the regulatory agencies, not the shareholders.
