# U.S. entertainment giant sought EU approval under its Foreign SubsidiesRegulation.

*business · news · 2026-06-10 · The Star*

## Key points

- Paramount Skydance Corp's $110 billion takeover of Warner Bros Discovery is under EU subsidy scrutiny.
- The deal is backed by Saudi PIF, Abu Dhabi's L'imad Holding, and Qatar Investment Authority.
- EU will decide by July 14 whether to approve the deal or start a 90-day investigation.
- The subsidy review is expected to be easier than the merger review for the involved companies.

BRUSSELS, June 10 (Reuters) - Paramount Skydance ⁠Corp's $110 billion takeover of Warner Bros ‌Discovery, backed by Gulf sovereign wealth funds, is under European Union subsidy scrutiny, according to ​a European Commission filing. The ⁠U.S. entertainment giant ⁠sought EU approval under its Foreign Subsidies ⁠Regulation, ‌which targets unfair foreign state aid, on Tuesday. The Commission, which ⁠acts as the EU competition enforcer, ​will ‌decide by July 14 whether to ⁠clear the ​deal or open a full-scale 90 working day investigation. Saudi Arabia's Public Investment Fund (PIF), ⁠Abu Dhabi-based L'imad Holding ​Company, and Qatar Investment Authority (QIA) are backing the deal, which is also being reviewed ⁠under EU merger rules. The subsidy review is expected to be easier than the merger one where the companies ​will likely have to ⁠offer concessions such as divesting a ​children's channel to address ‌EU competition concerns, sources ​have previously told Reuters. (Reporting by Foo Yun Chee;Editing by Elaine Hardcastle)

**Companies:** Warner Bros Discovery, Paramount Skydance Corp
**Countries:** United States, Saudi Arabia, United Arab Emirates, Qatar

[Read the full story on The Star](https://www.thestar.com.my/tech/tech-news/2026/06/10/paramount-warner-bros-deal-under-eu-subsidy-scrutiny-decision-due-july-14)

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