EU reviews Paramount’s $24B takeover of Warner, scrutinizes Middle Eastern funds

The European Commission has opened a Phase 1 antitrust review of Paramount Skydance's massive Warner Bros. Discovery acquisition, with $24 billion in Gulf sovereign wealth fund money drawing particular attention.

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Add us on Google by Editorial Team Jun. 10, 2026

The European Commission is now formally examining one of the largest media deals in history, and the sticking point isn’t just market concentration. It’s the $24 billion in Middle Eastern sovereign wealth fund money helping to pay for it.

Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, valued between $81 billion and $111 billion, has entered the EU’s Phase 1 antitrust review process. A decision is expected by July 7, 2026. The investigation will apply the EU’s Foreign Subsidies Regulation, a framework designed specifically to scrutinize deals involving state-linked capital from outside the bloc.

The money behind the megadeal

Three Gulf sovereign wealth funds have committed roughly $24 billion in equity to help finance the transaction. Saudi Arabia’s Public Investment Fund, the kingdom’s primary investment vehicle, is the largest single contributor at approximately $10 billion. Those commitments were finalized around early April 2026.

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The deal itself was announced on February 27, 2026. Paramount’s stock jumped about 11% on the news.

The Gulf funds are set to hold non-voting equity. By keeping the sovereign investors away from operational control or board seats, the deal’s architects are trying to sidestep mandatory review by CFIUS, the Committee on Foreign Investment in the United States, which has broad authority to block or unwind deals that pose national security risks.

Regulators lining up on both sides of the Atlantic

The UK’s Competition and Markets Authority launched its own investigation in May 2026, citing concerns around foreign ownership of major media assets. Democratic Senators in Washington have also raised flags about foreign governments holding significant financial stakes in companies that produce news and entertainment for American audiences.

The EU Foreign Subsidies Regulation gives Brussels a specific tool to examine whether foreign state funding distorts competition within the single market, adding a second layer beyond traditional antitrust review: whether the financial backing itself gives the combined company an unfair advantage over European competitors.

No Phase 2 investigation has been opened yet. Analysts anticipate that regulators may push for remedies, potentially requiring the combined company to divest certain assets. A July 7 deadline gives the Commission roughly a month to decide whether to clear the deal, clear it with conditions, or escalate to a full Phase 2 review.

What this means for investors

The $24 billion in sovereign wealth fund equity provides a financial cushion that few private buyers could match. Three separate jurisdictions are now actively scrutinizing the deal: the EU, the UK, and potentially the US through congressional pressure even if CFIUS doesn’t formally intervene.

PIF’s $10 billion commitment alone would represent one of the largest single investments by a Middle Eastern sovereign fund into a Western media company. The structure of the deal, with non-voting equity designed to minimize foreign influence concerns, suggests the parties anticipated this scrutiny. Investors who rode the 11% pop in Paramount shares should be watching the July 7 EU deadline closely.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.