European Commission Approves Paramount Acquisition of Warner Bros. Discovery

The European Commission granted antitrust approval for Paramount Skydance Corp. to acquire Warner Bros. Discovery. To obtain the clearance, Paramount agreed to divest its stake in United International Pictures, a joint venture with Universal Pictures used for film distribution in the European Economic Area, within 13 months of the closing. Paramount must also refrain from entering new distribution agreements with Universal in Europe for 10 years.

While the U.S. Department of Justice has cleared the deal, the transaction faces significant legal obstacles in the United States. A California-led coalition of states secured a court order to pause the merger, and the Writers Guild of America filed a lawsuit claiming the deal would jeopardize writers' livelihoods. Authorities in Britain are also considering intervention.

Financial pressures mount as the deal nears a critical deadline. If the transaction is delayed beyond September 30, Paramount CEO David Ellison may be required to pay Warner Bros. shareholders a ticking fee of approximately $7 million per day.