Paramount’s planned takeover of Warner Bros. Discovery remains subject to a multi-stage regulatory review process on both sides of the Atlantic. Whilst the European Commission officially opened the merger control proceedings back in early June, several parallel investigations are now underway which could affect the timetable for the $110 billion deal.

Within the EU, the focus is initially on the Phase 1 antitrust review. Following the notification on 2 June, the European Commission has until 7 July to decide whether to clear the transaction without conditions, approve it subject to conditions, or refer it to an in-depth Phase 2 review. Such an in-depth investigation would significantly extend the review period and could jeopardise the planned completion of the transaction by the end of the third quarter of 2026.

In addition to the standard merger control procedure, the European Commission has launched a further investigation under the Foreign Subsidies Regulation (FSR). The focus of this investigation is on whether part of the deal’s financing, provided by state-influenced investors from third countries, could lead to distortions of competition. In this specific case, the financing involved amounts to around 24 billion dollars, which, according to market sources, is said to originate from funds in Saudi Arabia, Qatar and Abu Dhabi. The Commission has set a separate deadline for its decision on this matter, by 14 July.

In the UK, too, a formal investigation has now been launched by the Competition and Markets Authority (CMA). The UK competition authorities are currently in Phase 1 of the investigation and intend to decide by 7 August whether to approve the takeover or refer it to an in-depth Phase 2 investigation. The latter would result in a significantly longer investigation period.

This leaves Paramount with a tight timeframe, with several regulatory decision points within the space of a few weeks. The group had previously indicated that it intended to complete the transaction by the end of the third quarter of 2026, if possible. The outcome of the regulatory reviews in the EU and the UK is therefore likely to be decisive for the future course of the deal.