EU Approves of Paramount’s $110 Billion Warner Bros. Acquisition

The European Commission has formally approved Paramount Skydance Corporation’s acquisition of Warner Bros. With EU approval, Paramount has reached another major milestone in finalizing its $110 billion USD (roughly $154 billion CAD) deal.

“The approval is conditional upon full compliance with the commitments offered by Paramount,” the European Commission wrote in a press release. According to the Commission, because Paramount and Warner Bros. are “both active in the production and distribution of theatrical and audiovisual entertainment content,” the deal will allow Paramount to “better compete” in the changing industry, especially as it continues to expand into streaming.

The Commission has determined that there are still enough major film studios remaining to provide stable enough competitors in the European Economic Area (EEA) markets. “These include other major US studios like Disney, NBC Universal and Sony, along with smaller US studios such as Amazon MGM, A24 and Lionsgate, as well as European studios,” the Commission says.

From a film distribution level, the Commission has found that there will be higher concentration and “increased transparency” in the EEA countries where Paramount has a structural partnership with Warner Bros. thanks to the latter’s portfolio. To combat these concerns, the Commission has provided Paramount with a series of remedies.

Paramount is to terminate its stake in United International Pictures, which the Commission believe would harm the distribution of Paramount’s and Universal’s films to cinema operators. Paramount has 13 months to comply. The Commission also states that Paramount is not to directly or indirectly enter into any agreement with Universal to jointly co-distribute films in the EEA for the next decade. Over these years, Paramount will not be allowed to shift Warner Bros.’ films from existing distributors to those used by Paramount.

Paramount has secured regulatory approval for its proposed transaction across a wide range of global markets. Antitrust and competition clearances have been granted in Canada, the United States, Australia, Brazil, China, Kuwait, Montenegro, New Zealand, North Macedonia, Saudi Arabia, Serbia, South Africa, South Korea, Ukraine, and by the COMESA Competition Commission. The company has also received foreign direct investment approvals in Australia, Germany, France, Spain, Slovenia, Belgium, Czechia, New Zealand, Italy, and Romania.