EU Opens FSR Probe of $110B Paramount-Skydance Warner Takeover
NFLX•The EU’s Foreign Subsidies Regulation is reviewing Paramount Skydance’s $110 billion takeover of Warner Bros. Discovery, probing the $24 billion equity financing from Gulf sovereign funds with a July 14 initial deadline. Netflix lost out after five months of bidding competition, facing a larger merged studio rival pending regulatory clearance.
1. EU Opens Foreign Subsidies Regulation Probe
The European Union’s Foreign Subsidies Regulation launched an initial investigation on Paramount Skydance’s proposed $110 billion takeover of Warner Bros. Discovery, setting a July 14 deadline to assess potential market distortions from state-backed financing under the bloc’s new rules.
2. Gulf Sovereign Funds Back $110B Takeover
A consortium of Gulf sovereign wealth funds committed about $24 billion in equity financing for the bid, led by Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority, and Abu Dhabi’s L’Imad Holding Co., raising regulatory scrutiny over foreign state subsidies.
3. Netflix Outmaneuvered in Five-Month Bidding War
Netflix, which had been a rival suitor throughout the five-month bidding process, was ultimately outbid by Paramount Skydance and now faces intensified competition from a combined Warner-Paramount entity pending regulatory approval.
