The UK government has indicated that it is likely to intervene in Paramount Skydance’s proposed $110 billion (£83 billion) acquisition of Warner Bros.Discovery, raising the prospect of further regulatory scrutiny for one of the largest media mergers in recent years.Culture Secretary Lisa Nandy has written to both current and prospective owners of Warner Bros.Discovery stating that she is ‘minded to intervene’ on public interest grounds, though no formal blockage has yet been issued.

If she proceeds, a Public Interest Intervention Notice could be triggered, leading to investigations by Ofcom and the Competition and Markets Authority (CMA).

Ofcom would assess the impact on media plurality and the diversity of UK media voices, while the CMA would examine potential competition concerns arising from the consolidation of major entertainment assets.These include Warner Bros., HBO, CNN, Cartoon Network, Nickelodeon, Channel 5, Paramount+, and other major film and television properties.

The proposed merger has already cleared certain regulatory hurdles in the United States, with the US Department of Justice reportedly giving approval despite industry criticism.Warner Bros.Discovery shareholders have also approved the takeover.

Paramount Skydance, backed by Larry Ellison and his son David, remains confident that the transaction will ultimately be approved in the UK, describing continued engagement with regulators as constructive.However, the deal has faced significant opposition from within the entertainment industry.

More than 1,000 professionals have signed an open letter opposing the merger, arguing that such consolidation could reduce creative output and limit opportunities within film and television.

Actor Mark Ruffalo has also publicly criticised the proposal, warning it could concentrate power in the hands of billionaires and reduce overall cultural diversity in production.Paramount and Warner Bros.Discovery are expected to respond to the UK government’s concerns by 6 July, after which a final decision on intervention will be made.