The European Commission is launching an investigation into Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, focusing on the role of Middle Eastern financing. Multiple outlets report that the Commission will examine the deal under the EU’s Foreign Subsidies Regulation, which applies when a transaction may benefit from non-EU financial support. The investigation covers the approximate $24 billion of backing provided through three Middle Eastern sovereign wealth funds that are linked to the proposed funding for the transaction. The Commission’s filing indicates that it must determine by July 14 whether the merger can proceed under the regulation’s requirements, after reviewing the foreign funding arrangements. The overall deal value is reported in the range of about $110 billion to $111 billion by the sources. The review is expected to assess whether the foreign subsidies involved have any distortive effects on competition within the EU framework. Until the EU completes its assessment, the merger remains subject to regulatory clearance.