European antitrust regulators approve Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, removing a major regulatory hurdle in the United States-European review process. Multiple outlets report that the European Commission clears the roughly $111 billion deal, describing it as conditional and tied to competition concerns in Europe.
The European Commission’s approval includes a requirement that Paramount address its existing film distribution arrangements with Universal. Sources say Paramount has already agreed to end its film distribution partnership or joint venture with Universal in Europe, with a deadline of about 13 months from the deal’s closing. Coverage also notes that the company’s decision to unwind that venture is intended to address the EU’s remaining merger concerns.
Despite the EU green light, the transaction still faces legal and regulatory uncertainty in the United States. The Los Angeles Times and other reports point to ongoing challenges from a coalition of U.S. state attorneys general alleging the merger would violate U.S. antitrust laws. Additional coverage references a recent U.S. court order requiring the companies to pause the merger temporarily.
