UK culture minister Lisa Nandy has threatened to intervene in Paramount’s proposed $110bn takeover of Warner Bros Discovery on public interest grounds, citing concerns about maintaining plurality in the media sector.
Government intervention
In a written answer to parliament, Nandy said the Department for Culture, Media and Sport has written today to the current and proposed owners of Warner Bros Discovery to tell them she is “minded to intervene” on public interest grounds. These grounds include the need for a sufficient plurality of views in news media in each market for news media in the United Kingdom or a part of the United Kingdom, and the need for a sufficient plurality of persons with control of the media enterprises serving every different audience in the UK.
Nandy added: “I am conscious that the proposed acquisition is global in nature. In reaching this decision, my focus has been, and will remain, on the UK public interest and the range of services available to UK audiences, including Channel 5, TNT Sports, Cartoon Network, Nickelodeon, and CNN International, as well as Paramount+ and HBO Max.”
Details of the merger
The mega-merger will bring together the Paramount and HBO Max streaming services, Channel 5 and TNT Sports, which broadcasts Champions League, Premier League and the Olympics, the Hollywood studios behind franchises including Superman, Batman and Top Gun, as well as HBO, home to shows including Game of Thrones, The White Lotus and Succession.
Earlier this month, the UK competition watchdog opened an investigation into the merger. However, it has been approved by the US Department of Justice.
Political implications
Nandy’s intervention may not please the US White House, as Paramount’s owners, the Ellison family, are allies of Donald Trump.
