EU Approves Paramount Takeover of Warner Bros Discovery with Conditions
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The European Union has given conditional approval to Paramount Skydance’s proposed $110 billion takeover of Warner Bros Discovery, clearing a major regulatory hurdle for one of the biggest deals in the global entertainment industry.
Brussels approved the merger after requiring Paramount to address concerns over competition in film distribution. As part of the conditions, Paramount must end its stake in United International Pictures, a European distribution joint venture with Universal, and cannot enter into new agreements with Universal to jointly distribute films in the European Economic Area for 10 years.
The European Commission said the commitments would ensure that films from the merged company would not be distributed together with productions from Universal or Disney, helping to maintain competition in the European market.
The EU concluded that the deal was unlikely to significantly reduce competition in film production, pointing to the presence of other major players including Disney, Amazon MGM and European studios.
However, the transaction still faces challenges in the United States, where a California federal judge has temporarily paused the merger. A further hearing in August could determine whether the deal can proceed.
If completed, the takeover would reshape Hollywood by reducing the number of major US film studios and creating a new entertainment giant. Critics have warned the merger could lead to job losses, fewer productions and reduced competition, while supporters argue it will strengthen the companies’ ability to compete in a rapidly changing global media market.
