Paramount Skydance Corp.'s $110 billion takeover of Warner Bros. Discovery Inc. is progressing toward European Union approval, with the buyer prepared to address competition concerns flagged by the bloc's competition chief. According to reports from The Financial Times, EU regulators are expected to approve the deal provided Paramount accepts remedies to address distribution competition concerns. The EU has set a July 7 deadline to decide whether to escalate its probe or proceed with approval. Latest reports confirm that Paramount is open to an EU demand to ditch a joint venture with Universal Pictures for movie distribution in return for clearance of the deal, according to people familiar with the matter who spoke on condition of anonymity.
EU Competition Chief Teresa Ribera highlighted specific concerns about film distribution during a Bloomberg TV interview on Wednesday. As reported by Bloomberg, Ribera emphasized the need to ensure there are 'alternatives that producers and filmmakers can find' to get their content into movie theaters and homes. The Spanish socialist also noted that EU regulators are exploring potential limitations in terms of creativity, cultural heritage, languages and recognition that could result from the Paramount-Warner merger. Her comments come just a day after Paramount's lawyers met European Commission enforcers working on the deal in Brussels, in which the parties discussed the possibility of concessions to secure EU approval.
Paramount is reportedly open to an EU demand to ditch a joint venture with Universal Pictures for movie distribution in return for regulatory clearance, according to sources familiar with the matter. According to The Financial Times, EU merger rules provide buyers only a short window to address competition concerns during the initial phase 1 probe. Remedies would need to be filed by the start of July to allow officials to test them during a brief extension period. The commission could then either clear the tie-up or open a phase 2 probe, potentially delaying a decision by about three months, though deadlines can be extended.
Paramount bosses are targeting a closing date in the third quarter of this year, with a rapid review process potentially enabling a quicker closure. As reported by The Financial Times, Paramount's lawyers met European Commission enforcers in Brussels to discuss concessions for EU approval. A Paramount spokesperson confirmed the company has been engaged with all regulatory bodies in a 'constructive and transparent manner' and will continue to do so.
The transaction, if approved, would give the Ellison family control of one of the most powerful media empires in the world. According to reports, the takeover unites two Hollywood studios behind legendary films from Casablanca and Harry Potter to Mission: Impossible, two major news networks in CNN and CBS, the streaming powerhouse HBO Max and dozens of cable networks. The deal represents the culmination of a competitive process where Paramount outmaneuvered rival suitor Netflix Inc. with multiple bids over more than five months, visits to Washington, meetings with shareholders and President Donald Trump and the personal backing of his billionaire father Larry Ellison.
