Britain said on Tuesday it could intervene in Paramount Skydance Corp.'s proposed $110 billion takeover of Warner Bros. Discovery, raising the possibility of a regulatory review despite the deal already receiving approval in several major jurisdictions.
The move marks the first stage of a process that could delay completion of the transaction, with the government citing concerns over media plurality and the provision of news and on-demand services in the United Kingdom.
The proposed merger has already been cleared by authorities in the United States, China, Australia, Germany, France and Saudi Arabia, while European Union regulators continue assessing the transaction.
Culture Secretary Lisa Nandy said she was "minded to intervene" after engagement with the companies and independent research.
She set a July 6 deadline for the parties to respond before deciding whether to issue a formal public interest intervention notice.
If such a notice is issued, Ofcom and the Competition and Markets Authority would begin reviews lasting up to 40 days.
Following those findings, the government could either clear the transaction or refer it for a more detailed investigation that could last up to 24 weeks.
Officials said the review would consider whether the merger could affect the diversity of news providers and control of media enterprises in Britain.
Businesses potentially affected include Channel 5, CNN International, TNT Sports, Cartoon Network, Nickelodeon, Paramount+ and HBO Max.
Paramount said it remained confident the transaction posed no media plurality concerns in Britain and that it expected to complete the deal within its previously announced timetable.
The company has offered Warner Bros. Discovery shareholders a ticking fee of 25 cents per share for every quarter the deal remains unfinished beyond September 30, amounting to roughly $650 million in cash each quarter.
Warner Bros. Discovery did not immediately comment.
EU regulators continue reviewing the merger, with Paramount expected to submit remedies aimed at addressing competition concerns as it seeks additional regulatory clearance.
A prolonged review in Britain could have wider implications for the timing of one of the media industry's largest proposed transactions.