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.

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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.