1st Jun 2022 10:56
(Alliance News) - The UK's Competition & Markets Authority on Wednesday said that it is launching an enquiry into the anticipated joint venture between Warner Bros Discovery Inc and BT Group PLC.
In May, telecommunications firm BT agreed to a sports broadcasting joint venture with Warner Bros Discovery. The 50-50 joint venture would see BT Sports and Eurosports combine.
Once complete, the production and operational assets of BT Sport would become a wholly owned subsidiary of Warner Bros. BT would get GBP93 million from Warner Bros and up to GBP540 million by way of an earn-out.
On Wednesday, UK competition regulator CMA launched a merger enquiry into the joint venture, which has a deadline of July 28 for its phase one decision.
The CMA said it "invites comments on the transaction from any interested party."
The news follows BT receiving notification from the UK government last Thursday. The UK secretary of state for Business, Energy & Industrial Strategy said that it is exercising its power under the National Security & Investment Act 2021 to investigate the increase in Atlice UK Sarl's shareholding in BT.
Shares in BT were up 1.0% to 189.10 pence each in London on Wednesday.
By Sophie Rose; [email protected]
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