Entertainment <\/p>\n
\n\tThe UK\u2019s antitrust authority has launched a formal investigation into the $110 billion merger between Paramount<\/a> and Warner Bros. Discovery<\/a> (WBD).<\/p>\n \n\tThe Competition and Markets Authority (CMA) said on Tuesday that it had opened a \u201cmerger inquiry\u201d into the deal that will reshape the global entertainment industry.<\/p>\n \n\tThe CMA will commence its so-called Phase 1 investigation from Wednesday, under which it will determine whether the Paramount-Warner pact poses a \u201crealistic prospect of a substantial lessening of competition.\u201d<\/p>\n \n\tThe CMA intends to conclude the Phase 1 process by August 7. If the threshold is met, the competition watchdog will move to a deeper Phase 2 investigation, which can last for more than five months.<\/p>\n \n\tIf the CMA does proceed to a more detailed analysis, it will raise serious questions about Paramount\u2019s ambition to close the WBD takeover in the third quarter of this year.<\/p>\n \n\tThe CMA opened the Phase 1 investigation after initially seeking comments on the deal in April<\/a>. <\/p>\n \n\tAntitrust work is also ongoing in the European Union, where a Phase 1 investigation is underway with a deadline of July 7. Competition scholars have predicted that a Phase 2 investigation is likely.<\/p>\n \n\tBloomberg<\/em> reported this week that Paramount is prepared to divest some of its children\u2019s TV network assets to clear any regulatory hurdles in the EU.<\/p>\n \n\tParamount Skydance<\/a>\u00a0CEO\u00a0David Ellison visited the UK earlier this year<\/a>\u00a0as part of a charm offensive of European regulators. He met with UK culture secretary Lisa Nandy, as well as prominent European creatives.<\/p>\n<\/div>\n\n\t\t\tWatch on Deadline\t\t<\/h3>\n<\/p><\/div>\n