EU clears Paramount acquisition of WBD

The approval follows a series of competition and foreign direct investment clearances in multiple jurisdictions

Paramount Skydance Corporation has received European Commission approval for its proposed acquisition of Warner Bros. Discovery, marking another regulatory milestone as the companies work toward completing the transaction.

The approval follows a series of competition and foreign direct investment clearances in multiple jurisdictions, including the United States, Australia, Brazil, Canada, China, South Africa and several European countries.

European approval advances transaction

According to Paramount, regulators or governments in 65 jurisdictions have either approved the transaction or decided not to challenge it on competition or foreign direct investment grounds. The company also received approval under the European Union's Foreign Subsidies Regulation and from Austria's Federal Competition Authority under its media merger control rules.

Paramount said the European Commission concluded that sufficient competition would remain in the European Economic Area following the merger. According to the company, the Commission found that film production would continue to include competition from major Hollywood studios, smaller US studios such as Amazon MGM, A24 and Lionsgate, as well as European studios.

Company cites findings in legal dispute

Paramount also said the Commission did not define high-budget or blockbuster films as a separate market and considered streaming platforms to compete directly with linear television. The company said these findings contradict arguments made in a lawsuit filed by several US state attorneys general seeking to block the transaction.

Makan Delrahim, chief legal officer of Paramount: "Today's approval from the European Commission marks another significant milestone in bringing Paramount and Warner Bros. Discovery together. We appreciate the Commission's constructive engagement and thorough analysis throughout its review. Not only does this combination not pose any competitive harms, it actually enhances competition by creating a scaled media and entertainment company with the ability to truly challenge the tech platforms that have come to dominate the industry. By strengthening competition it will support increased investment in content, expand opportunities for creatives and deliver greater choice for consumers. We are pleased that the European Commission, following its robust review, joins other bodies, including the United States Department of Justice, Australia's ACCC, Canada's CCB, Brazil's CADE, China's SAMR and South Africa, in concluding that this transaction does not harm competition and can proceed, further underscoring its potential to strengthen the global media and entertainment ecosystem."

Combined company outlines plans

Paramount said the combined business intends to produce at least 30 films each year for theatrical release, continue licensing and acquiring content from third parties, and maintain independent creative leadership for its established brands.

www.paramount.com

www.warnerbros.com

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