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EU conditional approval brings Paramount closer to Warner takeover
The European Commission required Paramount to unwind a Universal film distribution venture and restrict certain co-distribution deals for 10 years, even as a US court pause and an Aug. 3 hearing remain.
Paramount Skydance’s planned 80 billion pound takeover of Warner Brothers moved closer to fruition after the European Commission issued conditional approval, saying Paramount’s commitments addressed the EU’s merger concerns.
According to the European Commission, Paramount must end its film distribution joint venture with Universal Pictures as part of the deal and has 13 months from the deal’s closing date to pull out from that venture. Regulators also said Paramount should not directly or indirectly enter agreements with Universal to jointly co-distribute films in the EEA for a period of 10 years.
If the transaction is completed, the combined company would control a range of media assets including CNN, Warner Brothers Pictures, TNT Sports and the HBO Max streaming service, the European Commission said. The process is still expected to face tougher hurdles in the United States.
Paramount Skydance also faces a US pause in the deal, after a US court ordered the company to stop progress on the transaction that has been cleared by the US Department of Justice. A preliminary injunction hearing is set for August 3, with Paramount warning that prolonged interruption could be costly, and the California-led coalition of 12 states had argued the merger would harm competition.