European Union antitrust regulators cleared U.S. media group Paramount Skydance's USD 110 billion acquisition of Warner Bros. Discovery, subject to conditions addressing concerns about film distribution to European cinemas, the Commission said on Wednesday.
The EU review examined whether the deal risked pushing up prices or creating monopolies, though it did not assess the transaction's impact on media pluralism.
To secure approval, Paramount offered concessions during the investigation. It pledged to sell within 13 months its stake in United International Pictures, the joint venture through which it and Universal distribute films to cinemas. Brussels had feared that folding Warner films into that venture could fuel monopoly risks and higher prices for consumers. Paramount also promised not to cooperate with Universal on European film distribution for 10 years.
The company further committed not to shift Warner film distribution to any cinema distributor that also handles Universal and Disney titles in 17 countries, including Poland. Paramount will also be barred from moving distribution to Warner's local partners if those partners simultaneously serve Universal or Disney, a measure meant to prevent a post-merger monopoly.
The Commission additionally reviewed risks to children's television offerings but concluded sufficient competition exists from other broadcasters and streaming platforms in Europe, noting streaming services significantly constrain the merged company's ability to dictate terms.
Press freedom group Reporters Without Borders warned this week the takeover could threaten the independence of TVN24, urging the Commission to condition approval on guarantees for the station — an issue not covered by the EU's antitrust probe.
The deal has already been cleared by the U.S. Justice Department. A federal court in Oakland on Monday suspended the transaction until August 3, when a judge will decide whether to delay its completion pending litigation that could last months.
Paramount Skydance is led by David Ellison, its majority owner, who has faced accusations of influencing CBS's editorial output. The Ellison family has close ties to President Donald Trump and has reportedly pledged to alter the direction of CNN, also owned by Warner.
Should the deal close, it would mark the second major media acquisition by a company friendly to the Trump administration, following Skydance's earlier takeover of Paramount itself.
Paramount's holdings include Paramount Pictures, CBS, Nickelodeon, MTV and Paramount+, while Warner Bros. Discovery controls HBO, Max, CNN, Warner Bros. Studios, Discovery Channel, Cartoon Network and, in Poland, the TVN media group.
(jh)
Source: PAP