Paramount Skydance Corp’s proposed takeover of Warner Bros Discovery has come under European Union subsidy scrutiny, after the company sought approval under the bloc’s Foreign Subsidies Regulation for a deal backed by sovereign wealth funds from Saudi Arabia, Abu Dhabi and Qatar.
According to a European Commission filing reported by Reuters, the Commission will decide by July 14 whether to clear the transaction or open a full 90-working-day investigation.
The same deal is also being reviewed under EU merger rules.
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Britain’s competition watchdog said that it has launched a formal probe into Paramount Skydance’s $110 billion deal to buy Warner Bros. Discovery Inc. after it sought initial views on the acquisition in April. https://t.co/W0IfgzqwoO #Law360UK
— Law360 (@Law360) June 9, 2026
Gulf money and mounting questions
The financing package has drawn attention because it includes support from Saudi Arabia’s Public Investment Fund, Abu Dhabi-based L’imad Holding Company and Qatar Investment Authority.
Paramount was in talks to secure almost $24 billion in equity commitments from three Gulf sovereign wealth funds to help back the acquisition, which the company said in February was a $110 billion deal with an equity value of $81 billion.
Paramount are prepared to sell some of their children’s TV assets to secure EU approval for their Warner Bros acquisition.
The EU has heavily scrutinized the overlap between Nickelodeon and Cartoon Network.
(Source: https://t.co/SSUDTTv5wg) pic.twitter.com/can471zCxa
— DiscussingFilm (@DiscussingFilm) June 6, 2026
Regulatory hurdles ahead
The EU review adds another layer of regulatory examination to one of the biggest media transactions in recent years.
The subsidy probe is expected to be less demanding than the merger review, where the companies may need to offer concessions, including a possible divestment of a children’s channel, to address competition concerns.
The deal would combine assets including major studios and networks, while also pairing Paramount’s media businesses with Warner Bros Discovery’s portfolio.
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Capitol Hill takes a closer look
The transaction has already faced political scrutiny in the United States.
In May, six Democratic senators urged the Federal Communications Commission to conduct a rigorous review of the foreign investment tied to Paramount’s planned acquisition, warning that sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi could raise questions about editorial independence and national security.
The senators also asked what assurances had been given that outside investors would not seek influence over content decisions at Paramount.
FAQs
Q1: Why is the EU reviewing the Paramount-Warner Bros Discovery deal?
Ans: The EU is examining whether foreign sovereign wealth funding linked to the acquisition could raise concerns under its Foreign Subsidies Regulation.
Q2: When will the EU decide on the Paramount-Warner merger review?
Ans: The European Commission is expected to decide by July 14 whether to approve the deal or open a deeper investigation.
