European Union antitrust authorities cleared Paramount Skydance’s proposed acquisition of Warner Bros. Discovery on Wednesday, marking a significant regulatory milestone for the $110 billion transaction. The approval came after Paramount agreed to make concessions aimed at addressing competition concerns, including divesting its stake in a European film distribution joint venture with United International Pictures and committing not to enter into any film distribution agreements with Universal in Europe over the next 10 years.
The European Commission stated that these commitments would ensure the merged company’s films would not be distributed jointly with those of Universal or Disney, thereby addressing the regulatory body’s competition concerns. Paramount’s shares rose approximately 2% in afternoon trading following the announcement. The company noted that bodies and governments representing 65 jurisdictions have either cleared the transaction or declined to challenge it on competition or foreign direct investment grounds.
The EU clearance represents a substantial progression for the deal, which had previously received approval from the U.S. Department of Justice’s Antitrust Division. However, the merger continues to face obstacles in the United States, where a coalition of state attorneys general led by California’s Rob Bonta filed a lawsuit the previous week seeking to block the combination. The tie-up would merge two major film studios, consolidate a substantial portfolio of pay TV networks, and combine streaming services HBO Max and Paramount+.
A California district judge granted a temporary restraining order earlier this week imposing a 14-day pause on the merger’s progression. Paramount countered that the European Commission’s conclusions directly contradicted key assumptions underlying the state attorneys general’s complaint. The company indicated the transaction remains on track to close by the end of September.
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