Paramount submits EU remedies for $110B Warner Bros deal

Paramount Skydance submitted remedies to the European Commission over its $110 billion takeover of Warner Bros Discovery, with the EU setting a new July 22 deadline.theedgemarkets
The company is prepared to divest its film distribution joint venture with Universal Pictures to address antitrust concerns, according to Reuters.reuters
The U.S. Justice Department cleared the deal in June, but Britain said Tuesday it may intervene, adding another regulatory hurdle.reuters+1

Paramount Skydance Corp has formally submitted remedies to the European Commission to address competition concerns over its $110 billion acquisition of Warner Bros Discovery , with the EU extending its decision deadline to July 22 to assess the proposal.theedgemarkets

The remedy offer, submitted on Monday as previously signaled, follows weeks of negotiations between the company and Brussels regulators. Reuters reported on June 24 that Paramount is prepared to divest its film distribution joint venture with Universal Pictures Comcast Corporation to address EU antitrust concerns, a concession that emerged after a meeting with the bloc's competition officials.wtvbam+1

A Deal on Track

The European Commission had initially set a July 7 deadline to rule on the merger, which would combine two of Hollywood's most storied studios along with major news networks CNN and CBS, the streaming platform HBO, and dozens of cable channels. The Financial Times reported last week that Brussels is set to approve the deal provided Paramount accepts certain remedies, with Bloomberg reporting the acquisition is "on track" for EU clearance.bloomberg+3

EU competition chief Teresa Ribera told Bloomberg TV on June 24 that regulators were examining "the extent to which the ability of creators and producers to generate ideas is diminished" in a consolidated market. The joint venture in question, United International Pictures (UIP), distributes films for both Paramount and Universal Pictures across several European markets.news.bloomberglaw+1

Broader Regulatory Landscape

The EU approval would mark a milestone for the deal, which was announced in February as a $110.9 billion agreement at $31 per share. The U.S. Justice Department cleared the acquisition on June 13, but the transaction still faces scrutiny elsewhere. Britain said on Tuesday it could intervene in the deal, while a group of U.S. states including California is preparing a potential lawsuit to block it.reuters+3

More than 25 civil society organizations have urged Brussels to reject the merger, citing concerns about media diversity. The deal's financing has also drawn attention, with approximately $24 billion coming from Gulf sovereign wealth funds including Saudi Arabia's Public Investment Fund, the Qatar Investment Authority, and Abu Dhabi-based L'IMAD Holding.linkedin+2

The Commission's new July 22 deadline gives regulators additional time to evaluate whether the proposed remedy addresses their concerns or whether a more extensive investigation is warranted.theedgemarkets

Sources (61)