Key Takeaways:
- The deal, valued at $111 billion, faces multi-region regulatory review
- The foreign funds contribute $24 billion and hold 38.5% equity
- The EU deadlines set for July 7 and July 14 reviews
The European Commission is reviewing the proposed Paramount Warner Bros Discovery merger valued at $111 billion between Paramount, Skydance, and Warner Bros. Discovery in June 2026, over foreign funding from Middle Eastern sovereign wealth funds.
The review focuses on approximately $24 billion in financial backing from sovereign wealth funds based in Saudi Arabia, Qatar, and Abu Dhabi, under the European Union Foreign Subsidies Regulation framework.
Regulatory scrutiny focuses on the foreign investment structure
The European Commission has set a provisional deadline of July 14, 2026, to complete its assessment under foreign subsidy rules. This review runs alongside a separate merger evaluation under standard competition regulations with a deadline of July 7, 2026.
Paramount disclosed that foreign investors will hold 49.5% ownership in the merged entity, with about 38.5% of equity attributed to the three Middle Eastern sovereign wealth funds. The company stated that these investors will not have board representation or voting rights.
The merged entity is expected to remain under the control of the Ellison family, along with RedBird Capital Partners, both based in the United States. The ownership structure has been outlined as part of regulatory disclosures during the approval process.
The transaction is also under review in multiple jurisdictions. The United Kingdom Competition and Markets Authority has initiated an investigation into the merger, adding to the list of regulatory bodies examining the deal.
In the United States, the company continues to engage with regulatory authorities regarding the Paramount Warner Bros Discovery merger market impact. Several state-level authorities are also assessing the transaction.
Global approvals and ongoing reviews shape deal timeline
The proposed merger has received approvals from competition authorities in Saudi Arabia, Ukraine, Serbia, and North Macedonia. In addition, foreign investment clearances have been granted in Germany, Slovenia, Belgium, Czechia, New Zealand, Italy, France, and Romania.
In Australia, the Competition and Consumer Commission approved the transaction on June 9, 2026, subject to a 14-day waiting period ending June 23, 2026. The regulator stated that the merger is unlikely to significantly reduce competition in film distribution markets.
The Australian regulator also noted that the two companies are not considered close competitors relative to other major film studios, supporting its decision to allow the transaction to proceed.
In New Zealand, the Commerce Commission informed the parties on June 5, 2026, that it would not conduct further review, as the clearance process remains voluntary and informal approvals are not issued.
The transaction continues to undergo review across jurisdictions, with timelines dependent on regulatory assessments in each market. The dual review by the European Commission under competition and foreign subsidy rules remains a key milestone for the deal’s progression.
The Paramount Warner Bros Discovery merger represents one of the largest transactions in the media and entertainment sector, with regulatory outcomes expected to influence its completion timeline.
