The European Commission is investigating the Middle-East investment into the merger of Warner Bros. Discovery and Paramount Skydance. File Photo by John Angelillo/UPI | License Photo
June 10 (UPI) -- The European Commission is investigating the merger of Paramount Skydance and Warner Bros. Discovery because of the financial backing from three Middle Eastern sovereign wealth funds.
The investigation centers around the merger deal worth $111 billion under the European Union's Foreign Subsidies Regulation. The sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi have contributed about $24 billion to the merger, Variety reported.
Saudi Arabia's Public Investment Fund, Qatar Investment Authority and Abu Dhabi's L'imad Holding Co. have joined U.S.-based RedBird and LionTree as investors, Deadline reported Paramount said in an SEC filing in April.
The EU set a July 14 deadline for vetting the deal under the law, according to a notice on the EC's site. There is also an investigation under the standard merger rules that has a July 7 deadline.
