The European Commission, the European Union’s antitrust regulator, has found no competition concerns over the proposed $110 billion acquisition of Warner Bros. Discovery (WBD) by Paramount Skydance, according to Reuters.
The Commission said it approved the deal after Paramount Skydance committed to withdrawing from United International Pictures (UIP) — its European film distribution joint venture with Universal Pictures — within 13 months of the transaction’s completion.
Under the agreement, Paramount Skydance will not enter into any new film distribution agreements with Universal Pictures in Europe for the next ten years. In addition, the theatrical distribution rights for Warner Bros. films in Europe will be transferred to the company’s own distributor.
Deal temporarily halted in the United States
Meanwhile, last week a federal court in Oakland, California, temporarily suspended the acquisition for 14 days. Judge Araceli Martínez-Olguín granted a joint request filed by California Attorney General Rob Bonta and the attorneys general of 11 other states.
The plaintiffs argue that the merger could reduce competition in the theatrical distribution and content licensing markets.
Growing concerns over the merger
Warner Bros. Discovery owns Warner Bros. studio, HBO, CNN, TNT Sports, and Discovery television channels and streaming services.
If the acquisition is completed, these assets will come under the control of David Ellison, the son of Oracle founder Larry Ellison. Earlier, NBC News reported that U.S. President Donald Trump had spoken positively about the Ellison family and had called for a change in CNN’s ownership.
The Writers Guild of America has also filed a lawsuit against the merger, arguing that it could negatively affect screenwriters’ earnings. Last month, UK officials also expressed concerns about the potential impact on news broadcasting and children’s programming, saying they could intervene if necessary.