Paramount agreed to buy Warner Bros. Discovery for $31 per share and faces an added financial risk if the deal is delayed
Paramount Skydance’s proposed $110 billion takeover of Warner Bros. Discovery has run into another regulatory challenge as the UK government considers a public-interest review of the deal.
The move could slow the approval process, even if Britain ultimately does not block the merger.
Officials are examining whether the transaction could affect media diversity, competition, and children’s programming. The UK’s Competition and Markets Authority is already reviewing the merger, with a first decision expected by August 7.
Paramount agreed to buy Warner Bros. Discovery for $31 per share, but faces additional financial risk if the deal is delayed.
Under the agreement, the company must pay shareholders 25 cents per share every quarter after September 30 until the merger closes. Reuters estimates those payments could reach about $650 million every three months.
Industry experts expect UK regulators to seek commitments to protect Channel 5, children’s television, and Warner’s UK production operations rather than block the merger.
The deal also continues to face regulatory reviews in Europe and legal challenges in the United States.