EU Clears Warner Bros. Discovery Takeover by Paramount Skydance with Conditions

The European Commission has conditionally approved Paramount Skydance’s acquisition of Warner Bros. Discovery, pending specific commitments to preserve market competition.

European Commission Approval

The European Commission has conditionally accepted the acquisition of American media concern Warner Bros. Discovery by Paramount Skydance. The transaction can be finalized after fulfilling the obligations specified by the EC.

The EC conducted an antitrust review to examine whether the 110 billion dollar transaction would disrupt competitiveness in the EU market.

Concessions and Distribution Risks

As part of the concessions proposed by Paramount, the concern must sell its shares in United International Pictures within 13 months, through which Paramount and Universal distribute films to cinemas. The EC concluded that if Warner Bros. films were also distributed via United International Pictures, it would create a risk of monopoly on the EU market.

Paramount’s portfolio currently includes Paramount Pictures, CBS, Nickelodeon, MTV, and the Paramount+ platform. Meanwhile, Warner Bros. Discovery controls HBO, the Max platform, CNN, Warner Bros. Studios, Discovery Channel, Cartoon Network, and in Poland, the TVN Group.

US Regulatory and Judicial Status

The US Department of Justice has already given the green light for the acquisition of Warner Bros. Discovery by Paramount Skydance. On Monday, a federal court in Oakland suspended this transaction until August 3. On that day, a hearing will be held where the judge will decide whether the finalization of the transaction should be delayed for the duration of the court proceedings, which could take many months.