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(Sharecast News) - The UK competition regulator has announced an investigation into the proposed $110bn acquisition by Paramount Skydance of Warner Bros. Discovery
The Competition and Markets Authority said it launched the merger inquiry on Tuesday by giving notice to the parties involved, after a two-week 'invitation to comment' period in April.
The first deadline for the CMA's phase 1 decision is expected on 7 August, though the regulator said that deadlines may be extended in some circumstances.
The pivotal phase 1 decision will reveal whether or not the CMA intends to launch a more in-depth, statutory inquiry into the transaction due to a potential "substantial lessening of competition" in the industry.
The proposed combination has raised fears about the consolidation of power held by two significant Hollywood studios, which opponents argue could lead to job losses and higher streaming costs for platforms Paramount+ and HBO Max.
Industry figures have also questioned the companies' commitment to theatrical releases in cinemas, warning that smaller indie theatres would struggle if audience numbers reduce any further.
In April, over 1,000 filmmakers and actors signed an open letter opposing the deal, warning it would further concentrate ownership in an already concentrated media landscape.
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