Paramount’s Middle East Billions in Warner Bid Get EU Probe (1)

Paramount Skydance Corp.’s $110 billion takeover of Warner Bros. Discovery Inc. is being reviewed under the European Union’s Foreign Subsidies Regulation, with regulators probing involvement of Middle Eastern funds helping to bankroll the takeover.

The EU said Wednesday it set an initial July 14 deadline for vetting the deal under the law, which adds to an ongoing investigation under the bloc’s standard merger rules with a deadline a week earlier.

Scrutiny from the 27-nation EU is one of the last hurdles Paramount Chief Executive Officer David Ellison must overcome after outmaneuvering rival suitor Netflix Inc. with multiple bids ...