The CMA has set Aug. 7, 2026, as the deadline for its initial review of the deal, when it will decide whether the proposed merger of PSKY and WBD raises competition concerns.
- According to a Bloomberg report, a Paramount spokesperson said the CMA’s move was expected and that the company will work with the regulator.
- Paramount and Warner Bros. can work with the regulator to address its concerns with respect to competition in the industry.
- However, if the CMA is not satisfied with the parties' responses or proposed remedies, it can launch an in-depth Phase 2 investigation that can take up to 24 weeks to complete.
U.K.’s Competition and Markets Authority (CMA) on Tuesday commenced the probe into Paramount Skydance Corp.’s (PSKY) $110 billion takeover of Warner Bros. Discovery Inc. (WBD).
The CMA has set Aug. 7, 2026, as the deadline for its initial review of the deal, at which point it will decide whether the proposed merger of Paramount Skydance and Warner Bros. Discovery raises competition concerns.
Paramount Skydance shares edged lower by 0.1% in Tuesday’s pre-market trade, while Warner Bros. Discovery shares declined 1%.
Paramount Says Move Was Expected
According to a Bloomberg report, a Paramount spokesperson said the CMA’s move was expected and that the company will work with the regulator.
Paramount and Warner Bros. can work with the regulator to address its competition concerns, but if the agency is not satisfied with the parties' responses or proposed remedies, it can launch an in-depth Phase 2 investigation that can take up to 24 weeks to complete.
“The film and TV industries contribute billions to our economy, so it’s important we assess whether deals between studios may harm competition,” a CMA spokesperson told Reuters in April this year, saying that the agency is expected to launch an investigation in the coming weeks.
Elizabeth Warren’s Calls To Block PSKY-WBD Merger
Earlier this week, Senator Elizabeth Warren renewed her call to block the Paramount Skydance and Warner Bros. Discovery merger.
“The Paramount-Warner Bros. deal could mean foreign access to your personal data—and leverage over U.S. media,” she had stated in a post on X.
Warren also asked if the wealth funds of Saudi Arabia, Qatar, and Abu Dhabi should have a “near majority” stake in one of the U.S.’s largest media companies.
PSKY Asks EU To Approve WBD Deal
Last week, Paramount Skydance formally asked regulators in the European Union to approve its $110 billion Warner Bros. deal, while noting that it is working with EU regulators as they review the merger transaction.
The European Commission has set July 7, 2026, as the initial deadline to issue its ruling in the matter.
PSKY-WBD Deal
Paramount Skydance announced in February this year that it had entered into a definitive agreement with Warner Bros. to acquire the company.
Paramount stated that it will pay WBD shareholders $31 per share in cash, and added that it expects the transaction to close in the third quarter (Q3) of 2026.
In April this year, Paramount confirmed that it had received investments from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, Abu Dhabi sovereign wealth fund L’imad Holding, Qatar Investment Authority’s investment vehicle, QIA TMT Holding LLC, and U.S.-based LionTree Investment Fund.
The company also stated that the PSKY shares issued to the Equity Syndication parties will not have voting rights, while adding that the Ellison family and RedBird together will continue to hold the largest equity stake in PSKY.
How Did Retail Investors React To PSKY Stock?
Retail sentiment on Stocktwits around PSKY trended in the ‘bearish’ territory at the time of writing.
PSKY stock is down 22% year-to-date, while WBD stock is down 88%. The State Street Communication Services Select Sector SPDR ETF (XLC) is up 7% over the past 12 months, while the iShares Core S&P 500 ETF (IVV) is up 23%.
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