The proposed US$111 billion merger between Paramount Global and Warner Bros. Discovery is progressing toward obtaining regulatory approval in Europe. Reports indicate that the European Commission is likely to grant clearance for the deal without initiating a full-scale antitrust investigation.
According to industry reports, the European Commission, which acts as the EU’s competition regulator, is expected to approve the merger before the July 7 deadline to determine whether to launch a more thorough inquiry. Representatives from both Paramount and Warner Bros. Discovery have met with Commission officials during the review.
This approval will likely come with stipulations aimed at mitigating potential competition issues. One of the remedies under consideration is Paramount terminating its international film distribution agreement with Universal Pictures. Although a final decision is still pending, sources familiar with the discussions suggest that such a move may alleviate concerns regarding market concentration in international film distribution.
Earlier reports indicated that Paramount is also willing to divest certain assets in its children’s television networks if necessary to secure European approval. Neither Paramount nor the European Commission has provided public commentary on these recent developments.
The European review process is distinct from an ongoing investigation in the United Kingdom, where the Competition and Markets Authority has initiated a merger inquiry into the transaction.
Apart from competition issues, the European Commission is also scrutinising the foreign-investment aspects of the merger under its Foreign Subsidies Regulation. In an April filing, Paramount revealed that investors supporting the merger include Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, Abu Dhabi-based L’imad Holding Co., and American investment firms RedBird Capital Partners and LionTree.
The merger has already received approvals from regulatory bodies in China and South Africa, as detailed in recent securities filings. Additionally, competition authorities in countries such as Saudi Arabia, Ukraine, Serbia, and North Macedonia have determined that the deal does not breach antitrust laws. Foreign investment reviews have also been cleared in several nations, including Germany, Italy, France, Romania, Slovenia, Belgium, Czechia, New Zealand, and Spain.
Paramount has consistently maintained that this merger will bolster competition in the media and entertainment sector by creating a larger competitor to global technology and streaming giants such as Netflix, Amazon, and Apple.
If successful, the merger would create one of the world’s largest media and entertainment conglomerates, combining Paramount’s film, television, and news resources with Warner Bros. Discovery’s extensive portfolio of studios, networks, and streaming services. The resulting entity is anticipated to become a significant player in theatrical releases, news broadcasting, and global content distribution as traditional media companies strive for greater scale in an increasingly digital entertainment environment.
