Two of Hollywood’s oldest studios are trying to become one. The European Commission wants to make sure the money behind the deal isn’t giving anyone an unfair edge.
Paramount Skydance Corp’s proposed acquisition of Warner Bros. Discovery, valued at roughly $111 billion, is now under review by the EU’s Foreign Subsidies Regulation. The Commission has until July 14, 2026, to decide whether to approve the transaction or launch a full investigation that could stretch an additional 90 working days.
The sticking point: approximately $24 billion in financing from sovereign wealth funds based in Saudi Arabia, Qatar, and Abu Dhabi.
What the EU is actually investigating
The Foreign Subsidies Regulation gives the European Commission power to scrutinize deals where non-EU government money might distort competition inside the bloc.
