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EU, U.S. Lawmakers Signal Tough Review Ahead for Paramount-WBD Merger

European and American lawmakers are putting Paramount on notice that its proposed acquisition of Warner Bros. Discovery faces rigorous regulatory scrutiny despite shareholder approval last month.

Five legislators—three from the European Parliament and two U.S. House Democrats—warned CEO David Ellison in a joint letter Thursday. European regulators will closely examine market definition, market share thresholds, customer substitutability, vertical integration effects and downstream impacts under EU Merger Regulation.

The lawmakers cautioned that shareholder approval carries no weight in their respective governments' reviews. They expressed concern about public statements suggesting the deal would face minimal scrutiny or swift approval, calling such characterizations premature.

Paramount said it is engaging constructively with regulatory agencies conducting rigorous reviews of the transaction.