At the Neme21s event Nick Varney dismissed the suggestion that Paramount Park is going to happen. He highlighted that the estimated annual visitor numbers are more than all of those of Merlin's UK resorts put together, the 5,000 roomed hotel seems to be massively oversized, and that those involved in the project have very little experience in the theme park and leisure industry. If it does happen he then went on to say that he would anticipate it failing during its first few years, meaning Merlin could then purchase it at a 'knock down price' - possibly more of a tongue-in-cheek comment.
However, with Merlin Entertainments now a publicly owned company, there is somewhat of requirement of Nick Varney to always portray a confident outlook for the company in order to retain shareholders' confidence. Furthermore, Paramount Park has the potential to be major competition for Merlin, so it would be out of place for him to openly support the project and promote its possible success.
With that said, I am aware that all of Merlin's UK resorts are getting a major investment over the next few years, as something of a precautionary measure. We've already seen this with Thorpe's 2016 dark ride and Towers' 2017 coaster.