UK CULTURE SECRETARY MOVES TO INTERVENE IN PARAMOUNT'S $110BN WARNER BROS...

Lisa Nandy, UK culture secretary, has signalled her intention to intervene in Paramount's proposed $110bn (£85bn) acquisition of Warner Bros Discovery. Nandy stated on Tuesday that she was "minded to" request the communications regulator Ofcom to examine the merger's impact on media plurality. She also intends to ask the Competition and Markets Authority to investigate whether the deal creates competition issues. Paramount and Warner Bros Discovery have until 6 July to respond to Nandy's department.

The proposed merger would combine assets including Hollywood studios behind Superman, Batman and Top Gun; the UK broadcaster Channel 5; CNN; TNT Sports, which holds broadcasting rights to the Champions League, Premier League and the Olympics; and the streaming services Paramount+ and HBO Max. Nandy emphasised that her focus remains on protecting UK public interest and the range of services available to UK audiences. She noted that the Enterprise Act 2002 does not currently cover the effect of mergers on streaming and video-on-demand services, despite these now playing a significant role in the market. Nandy indicated she may introduce secondary legislation to extend Ofcom's remit to include these services.

Nandy said that if she decides to proceed with intervention, she will bring forward secondary legislation amending the Enterprise Act. This would allow Ofcom to assess streaming and on-demand impacts not only for this merger but for all future media deals. The proposed change reflects the shift in how audiences consume television content since the Enterprise Act was drafted, when viewing occurred primarily through broadcast linear channels. The decision follows engagement with the parties involved and independent research conducted by her department.