BRUSSELS, June 10 – European Union regulators are examining Paramount Skydance Corp’s massive $110 billion acquisition of Warner Bros Discovery, which receives financial support from Gulf sovereign wealth funds, based on a European Commission document.
The American entertainment company requested EU clearance under the bloc’s Foreign Subsidies Regulation on Tuesday, a rule designed to address unfair government assistance from foreign nations.
The Commission, serving as the EU’s competition watchdog, has until July 14 to either approve the transaction or launch a comprehensive 90-working-day probe.
Financial backing for the acquisition comes from Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi-based L’imad Holding Company, and Qatar Investment Authority (QIA). The transaction is simultaneously under review through EU merger regulations.
Industry sources previously indicated to Reuters that the subsidy examination should prove less challenging than the merger review, where the entertainment companies will probably need to provide concessions like selling off a children’s channel to satisfy EU competition requirements.
