By Edith Hancock
The U.K. could intervene in Paramount Skydance's $81 billion takeover of Warner Bros Discovery, the country's culture and media secretary said on Tuesday.
U.K. Culture Secretary Lisa Nandy said in a statement Tuesday that her department wrote to the companies saying she is "minded to intervene" on the deal on public interest grounds, based on there being "a sufficient plurality of views in news media" in the U.K. and a need for multiple persons to control media companies, or providers of on-demand media services serving U.K. viewers.
Nandy said the companies have until July 6 to respond to the letter.
It comes as the companies seek regulatory approval for the merger. The U.S.' Justice Department closed an investigation of the planned bid earlier in June before staffers who had concerns had an opportunity to object, the Wall Street Journal previously reported. The European Union is also scrutinizing the deal, with a July 7 deadline to decide whether or not to open an in-depth probe.
Nandy's statement said that if she decides to intervene she would issue a notice, ask the U.K.'s media watchdog, Ofcom, to assess the deal and could refer it to the country's Competition and Markets Authority for a more detailed probe. The CMA launched an initial, so-called phase-1 review of the deal earlier in June with a preliminary Aug. 7 deadline to wrap up the procedure.
A Paramount spokesperson said the company is confident the merger doesn't pose any media plurality issues in the U.K. The deal is valued at $110 billion including debt.
Warner Bros Discovery didn't immediately reply to a request for comment.
Write to Edith Hancock at edith.hancock@wsj.com