The European Union is examining Paramount Skydance’s proposed takeover of Warner Bros. Discovery for potential foreign-subsidy concerns tied to Middle Eastern funding. According to filings and reporting from multiple outlets, the European Commission is reviewing the roughly $110–$111 billion merger under the EU’s Foreign Subsidies Regulation. Regulators focus on about $24 billion in backing associated with three Middle Eastern sovereign wealth funds that are described as helping finance the acquisition. The European Commission is expected to determine whether the transaction is compatible with EU rules for foreign subsidies and whether any conditions or remedies are needed. Reporting notes that the Commission must reach a decision by July 14. The review does not indicate a final outcome, but it signals that EU authorities are assessing whether the deal’s external financial support could distort competition within the EU. The process centers on the merger’s funding structure rather than the creative or operational aspects of the companies, and it is part of the EU’s broader approach to scrutinizing cross-border transactions involving state-linked capital.