EU Scrutinizes Paramount-Warner Deal Over Foreign Funding

The probe centers on nearly $24 billion in funding provided by Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority, and Abu Dhabi’s L’imad Holding Co. These capital injections, disclosed in April, triggered the European Union’s Foreign Subsidies Regulation—a mechanism designed to curb market distortion from state-backed entities. The Commission has set a July 14 deadline for its subsidy inquiry, running parallel to a separate review of the merger’s broader competitive impact, which concludes on July 7.

While the transaction carries an enterprise value of $110 billion including debt, the involvement of Middle Eastern state wealth has drawn intense regulatory focus. A Paramount spokesperson declined to discuss specific proceedings, noting only that the company maintains a transparent, constructive dialogue with law enforcement and regulatory bodies. The outcome of these twin investigations will determine whether this massive consolidation of media assets, including HBO and CNN, can proceed under its current financial structure.