Paramount Skydance’s roughly $110 billion takeover of Warner Bros Discovery is under EU Foreign Subsidies Regulation scrutiny, with a decision due by mid-July on whether to clear the deal or open a full 90-working-day investigation.

The European Commission is assessing whether foreign funding from international investors could unfairly distort competition in the bloc.

Under the FSR, the Commission can probe foreign contributions totaling at least €250 million to EU-operating companies and may impose remedies if distortions are found; a July 14 deadline frames the current decision.

regulators in Australia and New Zealand approved the merger, finding some competition reduction but concluding the combined group would remain constrained by other studios.

Paramount disclosed that the merged entity would be 49.5% owned by foreign investors, with about 38.5% equity held by three Gulf states, though these investors would have no board seats or voting rights.

Paramount said the three Gulf-state investors would not receive board representation or voting rights, leaving control with the Ellison family and RedBird Capital Partners.

Paramount argues that delaying the deal would favor tech monopolies and harm creators and consumers, urging timely regulatory action.

Hollywood workers have organized rallies opposing the Paramount-Skydance deal, signaling broad industry pushback.

The non-voting equity structure is intended to limit foreign influence and potentially sidestep CFIUS, though regulators in the UK and EU could require remedies or divestitures if competition concerns persist.

New Zealand’s regulator signaled it would not pursue the merger further under its voluntary clearance regime as of early June.

Paramount says it is engaging transparently with regulators and law enforcement, while officials have declined to comment on FSR specifics; the Commission likewise declined to comment.

Paramount claims approvals or non-objections from multiple jurisdictions, including Saudi Arabia, Ukraine, Serbia, North Macedonia, and several European countries, with some foreign direct investment authorities also signaling clearance.