Jan 21 (Reuters) - The European Union's antitrust regulators are expected to scrutinize rival bids by Netflix NFLX.O and Paramount Skydance PSKY.O for Warner Bros. Discovery WBD.O at the same time, setting up an unusual head-to-head competition review, Bloomberg News reported on Wednesday.

The takeover battle puts major entertainment assets on the line, including DC Comics, iconic franchises ranging from 'Friends' to 'Batman,' and the HBO Max streaming service - a combination that could reshape Hollywood's power dynamics.

The parallel examinations are likely because the proposals are advancing on similar timeline and both bidders have already held preliminary discussions with the EU's merger watchdog about their plans, the report said, citing people familiar with the matter.

A parallel review would give Brussels added leverage over Warner Bros.' future, Bloomberg said. Regulators could shape the contest by quickly clearing one bidder while subjecting the other to a longer investigation or requiring concessions, potentially allowing a frontrunner to emerge.

The companies and the EU did not immediately respond to Reuters requests for comment.

Netflix on Tuesday revised its $82.7 billion offer to go all-cash in hopes of expediting the deal closure and providing greater financial certainty to investors worried about its previously stock-and-cash deal.

The new all-cash bid, at $27.75 a share, has unanimous support from the Warner Bros. board.

Any transaction is likely to face significant antitrust review, including the U.S. Department of Justice, the EU and the UK.

(Reporting by Juby Babu in Mexico City; Editing by Tasim Zahid)

((Juby.Babu@thomsonreuters.com;))