Warner Bros. Discovery (WBD, Financials) slipped after a UK official said she may intervene in Paramount Skydance's planned takeover.
UK Culture Secretary Lisa Nandy said she is minded to intervene on public interest grounds. Her concerns center on whether the deal could affect media plurality and control of major media assets in the UK.
The review could involve services such as Channel 5, TNT Sports, Cartoon Network, Nickelodeon, CNN International, Paramount+ and HBO Max.
Nandy said no final decision has been made. The companies have until July 6 to respond.
The UK Competition and Markets Authority is already reviewing the deal, with a Phase 1 decision due by Aug. 7.
Paramount said it does not believe the transaction creates media plurality issues in the UK and remains confident in its timeline.
For investors, the UK review adds another regulatory hurdle to an already large and closely watched media deal.