Britain's competition watchdog has begun formally examining the proposed merger between Paramount and Warner Bros. Discovery. The Competition and Markets Authority opened its probe on Tuesday, setting an initial deadline of August 7 to decide whether the deal requires deeper scrutiny.
The CMA's statement set out the timeline precisely. "The initial period of [the investigation will] commence on the first working day after the date of this notice, ie on 10 June 2026," the authority said. "The deadline for the CMA to announce its decision whether to refer the merger for a phase 2 investigation is therefore 7 August 2026."
A phase 2 investigation would be triggered if the initial review finds the proposed transaction may lead to a substantial lessening of competition in the United Kingdom.
The deal, which is led by David Ellison at Paramount, carries a reported value of $111 billion. It would combine two major studios, two large news operations, competing streaming services, and two portfolios of cable networks under a single company. According to The Hollywood Reporter, the merger is also receiving regulatory scrutiny in North America and Europe.
The CMA also issued what it called an invitation to comment, opening the process to outside voices. The authority said the invitation is the first part of its information-gathering process and welcomed submissions from any interested party on how the transaction could affect competition in the U.K.
Opposition to the deal has come from multiple directions. Writers, directors, actors, cinema operators, and industry competitors have all expressed concern about the power a combined entity would hold over the entertainment sector. Several U.S. states are also preparing legal action. California, New York, and other state attorneys general are understood to be moving toward a lawsuit to block the merger, following a promise by California attorney general Rob Bonta to investigate the deal.
The stakes, at least in the view of some industry members, are existential. "If this merger goes through, this will be the death of our industry, I believe," a TV writer said recently at an emotional town hall in Beverly Hills.
The CMA's August 7 ruling will determine whether the deal faces a longer and more intensive review in Britain.
