The European Commission has launched an investigation into the financial structure of Paramount Global’s proposed $110 billion acquisition of Warner Bros.
Discovery, specifically targeting the role of Gulf-state investors in the transaction.
The inquiry signals that European regulators are closely monitoring the source of capital behind mega-deals, adding a significant layer of complexity to the already scrutinized merger.
This development follows a separate probe by the United Kingdom’s competition authority, which has also opened an investigation into the deal.
The dual regulatory hurdles suggest that the path to closing the transaction is becoming increasingly difficult, as both major Western jurisdictions examine different aspects of the merger’s competitive and financial implications.
The EU’s focus on Gulf-state funding highlights a broader trend of increased regulatory attention on sovereign wealth and Middle Eastern capital in Western media and technology sectors.