A bipartisan group of U.S. and European lawmakers has warned Paramount Skydance CEO David Ellison that the proposed $111 billion merger with Warner Bros. Discovery (WBD) will face rigorous scrutiny from regulators in both regions. The lawmakers emphasized that shareholder approval, secured last month, does not guarantee final approval. The merger still requires regulatory clearance in the U.S. and Europe.
Part 1: Immediate Action & Core Facts
In a letter sent Thursday, five lawmakers—including U.S. Reps. Sam Liccardo (D-CA) and Deborah Ross (D-NC) and European Parliament members Nathalie Loiseau, Brando Benifei, and Andreas Schwab—stated that the merger must undergo a comprehensive review under antitrust, national security, editorial independence, and media plurality frameworks. They warned that the deal could reduce competition, limit consumer choice, and increase prices in film, television, and streaming markets.
Part 2: Deeper Dive & Context
Regulatory Concerns
The lawmakers expressed particular concern about public statements suggesting the merger would face minimal regulatory scrutiny. They highlighted that the European Commission and European Parliament will examine market definition, market share thresholds, customer substitutability, and vertical integration effects. The U.S. lawmakers echoed these concerns, stating that the merger could create new barriers to competition.
Paramount’s Stance
Paramount Skydance CEO David Ellison has previously stated that the company is on track to close the acquisition by the end of the third quarter. During an earnings call, he expressed excitement about the strategic benefits of the merger, which would combine major film studios, streaming services, and TV networks like CBS and TNT.
Broader Implications
The merger, if approved, would create one of the largest entertainment conglomerates in the world. However, regulators in both the U.S. and Europe have signaled that they will closely examine its potential impact on competition and consumer choice. The lawmakers’ letter underscores the growing bipartisan and transatlantic scrutiny of the deal.