The British government is likely to intervene in Paramount Skydance’s proposed $110 billion takeover of Warner Bros. Discovery. Officials fear the deal could reduce media plurality in the U.K.

In a statement to Parliament on Tuesday, U.K. Culture Secretary Lisa Nandy said, “Following engagement with the parties and independent research, my department ⁠has today written to the current and proposed owners of Warner Bros. Discovery on my behalf to inform them that I am minded to intervene.”

Nandy said she could step in because of “the need for, to the extent that it is reasonable and practicable, a sufficient plurality of views in news media in each market for news media” in the U.K.

She also wants to protect “the need, in relation to every different audience [in the U.K.], for there to be a sufficient plurality of persons with control of the media enterprises, or the enterprises providing on-demand program services or both, serving that audience.”

Streaming services under review

The merger would place several media brands under one owner. They include Channel 5, Cartoon Network, Nickelodeon, CNN International, Paramount+, TNT Sports and HBO Max.

Nandy also wants to update public interest rules. She said the changes should reflect the growing use of streaming and video-on-demand services.

“I believe this ought to be able to be considered in relation to this and all future media mergers, given the role on-demand viewing now plays in the market,” Nandy said. “If I decide to intervene in this merger on the basis, I will bring forward secondary legislation to finalise this public interest consideration as the Enterprise Act requires me to do.”

The companies have until July 6 to submit written responses. If Nandy intervenes, Ofcom and the Competition and Markets Authority will review the deal. They will then advise the government on the next steps.

A Paramount Skydance spokesperson said, “We are grateful for the continued constructive engagement with all interested government bodies and relevant authorities, including in the U.K. We are confident that our proposed transaction does not pose any media plurality issues in the U.K. and remain confident in our stated transaction timeline.”