The European Commission has launched a formal investigation into the financial architecture of Paramount Global’s proposed $110 billion acquisition of Warner Bros.
Discovery, according to Bloomberg.
The probe zeroes in on the role of Gulf-state investors in financing the transaction, marking a significant escalation in regulatory scrutiny for the media merger.
Brussels is examining whether the capital structure of the deal raises competition or state-aid concerns, particularly given the substantial involvement of sovereign wealth funds from the Middle East.
The EU's review runs parallel to an ongoing competition investigation by the UK’s Competition and Markets Authority, which has already signaled it will closely monitor the consolidation of two major content libraries.
The focus on Gulf funding introduces a new layer of complexity to the deal.