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U.S., EU Lawmakers Signal Tough Review Ahead for Paramount-Warner Bros. Discovery Merger

Lawmakers from the United States and European Union warned Paramount Skydance CEO David Ellison that his company's proposed acquisition of Warner Bros. Discovery will face rigorous regulatory examination, despite shareholder approval last month.

In a joint letter, three European Parliament members and two Democratic House representatives cautioned that shareholder votes do not determine merger outcomes in their jurisdictions. European regulators will scrutinize market definition, market share thresholds, customer substitutability, vertical integration effects, and internal market impacts under EU Merger Regulation standards.

The lawmakers expressed concern about public statements suggesting the deal would receive minimal regulatory scrutiny or swift approval. They warned the transaction could create new barriers to competition. Paramount did not immediately respond to requests for comment.