CMA probes £80bn Warner Bros takeover amid fears it could harm competition in the UK
The competition watchdog has launched an investigation into the £80bn takeover of Warner Bros.
The Hollywood studio behind films ranging from Casablanca to Harry Potter is due to be bought by rival Paramount, maker of The Godfather, after a bidding war with Netflix that gripped the industry.
However, the Competition and Markets Authority (CMA) is investigating the deal over fears it could harm competition in the UK.
There are concerns the takeover will reduce the number of major Hollywood studios from five to four.
While Warner Bros shareholders have backed the deal, actors, writers, directors and analysts have warned it could lead to thousands of job losses, stifle innovation in Hollywood and leave audiences with less choice.
The ‘phase 1’ probe will run until August, when the CMA may decide to launch a full ‘phase 2’ investigation that could result in demands for parts of the business to be sold.
Dog fight: Paramount, whose films include The Godfather (starring Marlon Brando, pictured), beat off competition from Netflix to win the race for Warner Bros
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