European Commission Approves Paramount-Warner Bros. Merger - Variety

What the report says

Variety reported that the European Commission has cleared the proposed merger of Paramount Skydance and Warner Bros. Discovery, a major regulatory step for the companies’ planned $111 billion combination. The approval, announced Wednesday, is conditional: Paramount must leave its European film distribution joint venture with Universal, United International Pictures, within 13 months.

According to Variety, EU regulators concluded the transaction was unlikely to damage competition in television or film production because other global and local players would remain in the market. The Commission’s concern centered instead on theatrical film distribution, where Paramount’s existing arrangement with Universal could increase concentration after the merger. Paramount also agreed not to enter a similar distribution partnership for at least 10 years.

The European decision does not end scrutiny of the deal. Variety reported that a federal judge in Oakland, California, temporarily blocked the merger on Monday while considering a preliminary injunction sought by 12 states, including California and New York. Those states argue the merger would combine major U.S. cable programming and film distribution assets, potentially raising prices and reducing output. The Writers Guild of America has also filed suit, saying the deal could narrow pay and creative opportunities for writers.

Paramount has secured approvals from about 20 other jurisdictions, including Australia and China, and from the U.S. Department of Justice, while the United Kingdom is still weighing whether to intervene. Paramount legal chief Makan Delrahim welcomed the EU decision and argued the merger would help the combined company compete with large technology platforms.