Joint venture operation Warner Bros. Discovery-BT Sports in progress by UK competition observer –

A British competition watcher said on Wednesday it was launching an investigation into a BT Group deal linking the UK and Irish sports TV business with Warner Bros. in a joint venture with Discovery.

The Competition and Market Authority (CMA) set July 28 as the deadline for making the so-called first-stage decision on whether the planned development would also lead to less competition.

He said his investigation will examine whether the company “is expected to cause a substantial reduction in competition in any market or markets in the UK for goods and services”.

To help with its assessment, the CMA invited “any interested party to comment on the transaction.”

Last month, the entertainment giant and the British telecoms company announced an agreement to merge their sports media units BT Sport and Eurosport into a 50/50 joint venture in the UK and Ireland. “The transaction is subject to customary closing conditions, including approval from the relevant regulatory authorities, and is expected to close by the end of 2022,” they said at the time.

“Our recent statement to BT Group states that the transaction is subject to normal closing conditions, including approval from the relevant regulators,” reiterated Warner Bros. on Wednesday. Discovery. “As such, this is a normal step in the process.”

BT, which has rights deals for English Premier League football, English Premier League rugby and cricket, said last spring it wanted to focus on its core telecoms business and is in talks with potential partners for the future of BT Sport. , which generates losses. . When the deal was announced, the partners said it would bring together a “broad portfolio of premium sporting rights, including the Olympics, the Premier League, the UEFA Champions League, the UEFA Europa League, the Cycling Grand Prix, the Grand Tennis Stroke”. Winter Sports World Cup and Premier Rugby season.