The European Commission has intensified its review of Paramount Skydance’s proposed $81 billion acquisition of Warner Bros. Discovery by issuing fresh requests for information as part of an investigation under the EU’s Foreign Subsidies Regulation (FSR) according to The Capitol Forum. The inquiries are aimed at determining whether financial support from sovereign wealth funds involved in the transaction could distort competition in the European single market.
According to The Capital Forum, the Commission has asked Paramount Skydance to provide detailed information about funding tied to state-backed investors, including Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and Abu Dhabi’s L’imad Holding. Regulators are examining whether these financial contributions qualify as foreign subsidies that could give the acquiring company an unfair competitive advantage within the EU.
The review shows the growing importance of the EU’s Foreign Subsidies Regulation, which entered into force to address concerns that companies backed by non-EU governments may benefit from financial support that distorts competition in European markets. The rules allow the Commission to investigate large mergers and acquisitions involving foreign funding and, if necessary, impose remedies or block deals that could harm fair competition.
The Paramount Skydance bid represents one of the largest media sector transactions currently under regulatory review. The proposed combination would unite major entertainment assets including Warner Bros.’ film and television studios, HBO and its streaming platform, and a wide range of cable networks with Paramount’s extensive content portfolio and production capabilities. If completed, the merged group could generate tens of billions of dollars in annual revenue and compete more directly with global streaming and media giants.
Separate analysis by Antitrust Intelligence has identified several financial “red flags” in the structure of the PSKY–WBD transaction that could draw closer regulatory attention when authorities assess the broader competitive implications of the deal.
The Commission has not publicly commented on the investigation, and the transaction has not yet been formally notified under EU merger rules. Nevertheless, the additional information requests signal that Brussels is closely examining the role of sovereign wealth funding in major global acquisitions, particularly in strategically sensitive sectors such as media and digital content.
