The UK culture secretary, Lisa Nandy, has told one of the biggest media deals in history that she is “minded to intervene,” potentially stopping a $110bn (£85bn) mega-merger that would create a global powerhouse controlling assets from Superman to Channel 5. Nandy intends to ask Britain’s media and competition watchdogs to examine Paramount’s acquisition of Warner Bros Discovery (WBD) on grounds of media plurality and competition. The deal would combine Hollywood studios behind franchises including Superman, Batman and Top Gun; the UK’s Channel 5; news channel CNN; TNT Sports, which broadcasts Champions League, Premier League and the Olympics; and streaming services Paramount+ and HBO Max. Nandy said on Tuesday that she planned to authorise both the Competition and Markets Authority (CMA) and Ofcom to investigate the merger’s impact. “Following engagement with the parties and independent research, my department has today written to the current and proposed owners of Warner Bros Discovery on my behalf to inform them that I am minded to intervene,” Nandy said in a written ministerial statement. She emphasised that her focus was “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.”
Media mergers in the UK can be scrutinised under the Enterprise Act 2002, but the law was written before streaming became dominant. Nandy noted that the act “does not cover the effect of a merger on streaming or video-on-demand services”. She said she believed streaming “ought to be able to be considered in relation to this and all future media mergers given the role on-demand viewing now plays in the market”. If she decides to intervene, she would bring forward secondary legislation to include streaming and on-demand services in the Enterprise Act. This would allow Ofcom to investigate the merger’s impact on on-demand services, which is currently not covered.
“Explains why the UK may intervene in Paramount's $110bn takeover of Warner Bros Discovery.”
For UK readers, the deal directly affects what they watch and how diverse the media landscape is. Channel 5, TNT Sports, and CNN International are all part of the merged entity, meaning a single company would control significant broadcast, sports and news content. Nandy’s intervention is designed to protect “media plurality” – the idea that a variety of independent voices should exist in the media, rather than power being concentrated in too few hands. The CMA would examine competition issues, while Ofcom would look at the impact on the breadth of Britain’s media ecosystem. The government’s move signals that even though the merger is global, the UK is prepared to act to safeguard its own public interest.
Q: What is the Paramount-Warner Bros Discovery merger? Paramount, the company behind Paramount Pictures and Channel 5, has proposed to acquire Warner Bros Discovery for $110bn (£85bn). The combined group would own Hollywood studios, TV channels, news networks and streaming services, creating a media giant with huge influence.
Q: Why is the UK government considering intervening? The culture secretary, Lisa Nandy, is concerned about media plurality – the risk that one company gains too much control over news, sports and entertainment in the UK. She has asked Ofcom and the CMA to investigate whether the deal would reduce the range of independent voices available to UK audiences.
Q: What powers does the UK have to block or change a foreign takeover? Under the Enterprise Act 2002, the government can intervene in mergers that raise public interest concerns, such as media plurality or competition. However, the act does not currently cover streaming services. Nandy has said she may bring forward secondary legislation to include on-demand services in the law.
What happens next is uncertain. Nandy has said she is “minded to intervene”, but has not yet formally referred the deal to the regulators. If she does, Ofcom and the CMA will conduct detailed investigations that could take months. The government may also pass new rules to expand the scope of media merger reviews. The outcome could set a precedent for how the UK treats future media mega-mergers in the streaming age.