Global Lawmakers Warn Paramount-WBD Merger Faces Rigorous Regulatory Scrutiny Under US and EU Laws

An international coalition of politicians has raised significant concerns about the upcoming acquisition of Warner Bros. Discovery by Paramount-Skydance, warning CEO David Ellison of the extensive regulatory review the deal will face in both the United States and the European Union.

The coalition, led by Congressman Sam Liccardo (CA-16) and Congresswoman Deborah Ross (NC-02), includes prominent figures such as France’s Nathalie Loiseau, Italy’s Brando Benifei, and Germany’s Andreas Schwab. In a letter sent to Ellison on Thursday, the group expressed concerns about the deal’s regulatory challenges, stating that public statements suggesting the acquisition will face “minimal regulatory scrutiny or will likely receive swift approval” appear “premature.”

Regulatory Concerns Across Multiple Jurisdictions

The letter highlights that shareholder approval does not determine the outcome of the transaction. Instead, the deal must undergo a rigorous and comprehensive review under all applicable competition, national security, editorial independence, and media and cultural plurality frameworks.

The coalition emphasized its responsibility to “safeguard consumers from consolidation that may reduce competition, increase prices, diminish innovation or limit consumer choice.” They warned that if the transaction is not fully compliant with the authorization process and applicable legislation, it could substantially lessen competition across interconnected markets, including:

• Film and television production
• Content licensing
• Theatrical distribution
• Streaming services

“It could, thereby reduce consumer choice and increase prices,” the letter stated.

European Commission and Parliament to Scrutinize Deal

The coalition explained that the European Commission and the European Parliament will closely examine factors such as “market definition, market share threshold, customer substitutability, vertical integration effects and downstream impacts in the Internal Market.”

Foreign Sovereign Wealth Funds Raise National Security Questions

The letter also raised concerns about the “significant financing” from “foreign sovereign wealth funds,” pointing to reported investors linked to the United Arab Emirates, Qatar, and the Saudi Public Investment Fund. These investments “raise serious questions regarding national security, editorial independence, foreign state influence, and the potential for review by the Committee on Foreign Investment in the United States (CFIUS).”

Call for Media Pluralism and Editorial Independence

The coalition warned about the acquisition’s impact on “media pluralism,” calling for “internal safeguards to guarantee that editorial decision-making remains independent of the interests of corporate shareholders, particularly third-country investors.”

“Public trust requires a rigorous and transparent review process. Please consider this letter formal notice that any suggestions the transaction has effectively cleared regulatory hurdles are false,” the letter continued. “We encourage caution in public communications regarding anticipated timelines or likelihood of approval, to avoid any risk of misleading shareholders or the public. We caution against creating artificial expectations in financial markets regarding deal certainty, which could give rise to protracted litigation. Regulatory outcomes remain independent determinations based on statutory standards, not transaction size or political influence.”

With an “extensive set of regulatory review processes” awaiting the acquisition, the coalition concluded by noting they expect “further engagement on this matter, including testimony and hearings before the relevant congressional and parliamentary committees of jurisdiction.”