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The UK competition regulator has launched a phase 1 investigation into Paramount Skydance Corp’s proposed acquisition of Warner Bros Discovery Inc. The Competition & Markets Authority said on Tuesday it is considering whether the transaction could result in the creation of a relevant merger situation under the Enterprise Act 2002 and whether it may lead to a substantial lessening of competition in any UK market. The CMA has set a deadline of August 7 for its phase 1 decision. The deal was approved by Warner Bros shareholders in April. Under the terms of the agreement, Paramount will pay $31.00 per share in cash for all outstanding Warner Bros shares, implying an equity value of around $81 billion and an enterprise value of roughly $110 billion, including debt assumed by the buyer. New York-based Warner Bros. Discovery reported a widened net loss of $2.92 billion in the first quarter from $453 million a year earlier, although adjusted Ebitda rose 4.7% to $2.20 billion. Revenue slipped to $8.89 billion from $8.98 billion, while its Streaming division delivered stronger growth in distribution, advertising, and subscriber-related revenue. Warner Bros shares were 0.4% lower in pre-market trading at $26.36 each on Tuesday morning in New York, while Paramount shares were also down 0.4%, at $10.35 each in the pre-market. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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