Paramount-Warner Bros $110 Billion Deal Faces EU Subsidy Review, Decision Due July 14

The European Commission opened an investigation into Paramount Skydance's proposed acquisition of Warner Bros. Discovery under the EU's Foreign Subsidies Regulation, examining the role of three Middle Eastern sovereign wealth funds—Saudi Arabia's Public Investment Fund, Abu Dhabi's L'imad Holding Company, and Qatar Investment Authority—which are providing approximately $24 billion of the deal's financing. The Commission will decide by July 14 whether to approve the transaction or initiate a full 90-day investigation, running parallel to a separate merger review with a July 7 deadline. Paramount has stated that the merged entity would be 49.5% foreign-owned, with Gulf states holding about 38.5% equity while maintaining no board representation or voting rights, with control remaining with the Ellison family and U.S.-based RedBird Capital Partners. The deal is also under review by regulators in the U.K., Australia, and other jurisdictions, though it has already received approvals from competition authorities in Saudi Arabia, Ukraine, Serbia, and North Macedonia. Sources suggest the subsidy review may be less demanding than the merger review, where the companies may need to divest assets such as a children's channel to address EU competition concerns.