European legislators join members of Congress in scrutinizing Paramount-WBD merger

“As elected Members of the United States Congress and the European Parliament, we wish to clarify that shareholder approval has no bearing on the rigorous and comprehensive review under all applicable competition, national security, editorial independence and media and cultural plurality frameworks that this transaction must now undergo,” the letter reads.

Reps. Sam Liccardo (D-CA) and Deborah Ross (D-NC) signed the letter alongside European MPs Nathalie Loiseau, Brando Benifei, and Andreas Schwab.

“This transaction, if not fully compliant with a due authorization process and respecting all applicable legislation, could substantially lessen competition across interconnected markets, including film and television production, content licensing, theatrical distribution, and streaming services,” they wrote. “It could, thereby reduce consumer choice and increase prices.”

Multiple members of Congress, including Liccardo, have written letters before voicing their concerns about the Paramount-WBD merger. What makes the latest letter different is that European lawmakers are joining their American counterparts in signaling opposition to the blockbuster merger.

“In the European Union, the European Commission and the European Parliament will closely examine market definition, market share threshold, customer substitutability, vertical integration effects, and downstream impacts in the Internal Market pursuant to the EU Merger Regulation,” they said.

Apart from reduced competition and other antitrust concerns, the letter’s signatories are alarmed by foreign investments from the United Arab Emirates, Qatar, and Saudi Arabia in the merger. Foreign investors are expected to own 49.5% of the combined company, with 38.5% of the equity held by sovereign wealth funds in the three aforementioned Gulf States.

Paramount has said the foreign investors will not hold board seats or voting shares in the combined entity.

“Paramount has been engaging constructively and proactively with regulatory agencies which are rigorously reviewing the transaction,” a Paramount spokesperson said in response to the letter.

Ellison wants to close the merger by the third quarter of 2026, but that favorable outcome depends on whether Paramount secures regulatory approval before the end of September.