Paramount, Warner Bros deal under EU subsidy scrutiny, decision due July 14

BRUSSELS, - ​Paramount Skydance ​Corp's $110 billion takeover of Warner ​Bros Discovery, backed by Gulf sovereign wealth funds, is under European Union subsidy ‌scrutiny, ⁠according to ⁠a European Commission filing.

The U.S. ​entertainment giant sought EU approval under its Foreign ​Subsidies Regulation, which targets unfair foreign state aid, on Tuesday.

The ​Commission, which acts as ⁠the EU ‌competition enforcer, will ​decide by ​July 14 whether to ⁠clear the deal or open a ​full-scale 90 working day investigation.


Saudi Arabia's Public Investment Fund (PIF), Abu Dhabi-based L'imad Holding Company, and Qatar Investment Authority (QIA) are backing the deal, which is ‌also being reviewed under EU merger rules.

The subsidy review ​is expected ​to be ⁠easier than the merger one where the companies will likely have to offer ​concessions such as divesting a children's channel to address EU competition concerns, sources have previously told Reuters.