Paramount Warner Bros $110B Deal Faces EU Subsidy Scrutiny Decision by July 14
EU Scrutiny of Paramount Skydance and Warner Bros Discovery Takeover
By Foo Yun Chee
Overview of the $110 Billion Takeover
BRUSSELS, June 10 (Reuters) - 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.
EU Foreign Subsidies Regulation Filing
The U.S. entertainment giant sought EU approval under its Foreign Subsidies Regulation, which targets unfair foreign state aid, on Tuesday.
Commission's Decision Timeline
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.
Key Investors and Additional Reviews
Gulf Sovereign Wealth Fund Backing
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.
Subsidy Review vs. Merger Review
Expected Outcomes and Potential Concessions
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.
(Reporting by Foo Yun Chee;Editing by Elaine Hardcastle)
