UK Government Signals Potential Intervention in $110 Billion Paramount-WBD Merger

The UK’s move introduces significant regulatory friction for a deal already cleared by the U.S. Department of Justice. By signaling an intent to update the Enterprise Act 2002 via secondary legislation, the UK government is moving to close a regulatory gap where global streamers have historically faced lighter scrutiny than terrestrial broadcasters regarding media plurality. For the broader ecosystem, this sets a precedent for how 'on-demand' assets are weighted in large-scale consolidation, suggesting market share in streaming will now trigger the same diversity safeguards as news and linear TV. Watch the CMA’s August 7 deadline for a Phase 2 referral, which would likely push the closing date into 2027.

The UK's scrutiny coincides with increased regulatory pressure across Europe. Per Screendaily, July 2026, Paramount Skydance offered specific concessions to the European Commission on June 30 to address antitrust concerns. These remedies reportedly include Paramount exiting its United International Pictures (UIP) film distribution joint venture with Universal Pictures to satisfy cinema operators. The European Commission subsequently extended its decision deadline to July 22, 2026, to evaluate these commitments.

Domestically, the UK is already in the process of modernizing its media oversight. According to Government updates from February 2026, the Department for Culture, Media and Sport (DCMS) is implementing the Media Act 2024 to bring 'Tier 1' streaming services—those with over 500,000 UK users—under Ofcom's direct regulation. This new framework will eventually subject platforms like Netflix and Disney+ to the same impartiality and accuracy standards as linear broadcasters, reflecting a broader policy shift toward treating streaming as a core public information utility.

While federal U.S. regulators cleared the $110 billion transaction without conditions in June 2026, state-level opposition remains active. Per Reuters, July 2026, attorneys general from California and New York are reportedly preparing lawsuits to block the merger, citing concerns over film production concentration and consumer choice. This multi-front regulatory landscape suggests that even with DOJ clearance, the final structure of the Paramount-WBD entity will likely be shaped by regional divestitures and behavioral remedies.