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Erik Gruenwedel<\/a><\/p>\n July 22, 2026<\/p>\n The European Commission \u2014 the economic trade group representing 28 countries \u2014 has approved the proposed $111 billion equity acquisition by Paramount of Warner Bros. Discovery.<\/p>\n The approval is conditional upon full compliance with commitments offered by Paramount, which include termination of the company\u2019s stake in a theatrical distribution joint venture with Universal Pictures \u2014 United International Pictures \u2014 within 13 months from the closing of the transaction. Not doing so the Commission said could lead to worse rental and distribution terms for theater operators, and ultimately disadvantage consumers.<\/p>\n Paramount would also not, directly or indirectly, enter into any agreement or understanding with Universal to jointly co-distribute films in EU for 10 years.<\/p>\n The media company would also not move distribution of Warner movies from their existing distributor to the theatrical distributor used by Paramount, where that distributor also distributes Universal\u2019s or Disney\u2019s films in the EEA (that is Bulgaria, Croatia, Czechia, Cyprus, Denmark, Estonia, Finland, Greece, Hungary, Iceland, Latvia, Lithuania, Norway, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden).<\/p>\n Paramount would also not shift the distribution of its films to the distributor used by Warner, where that distributor also distributes Universal or Disney\u2019s films.<\/p>\n The Commission found that, at the movie production level, enough film studios remain as competitors throughout the EU, including U.S. studios Disney, Universal and Sony, along with Amazon MGM Studios, A24 and Lionsgate, as well as European studios.<\/p>\n The Commission found that enough alternative competitors remain to exert sufficient competitive pressure on the merged entity. In particular regarding the overlap in pay-TV channels for children, the EU found that streaming platforms offering children\u2019s content will continue to act as a competitive constraint on the merged entity\u2019s TV channels.<\/p>\n The EU contends that Paramount\u2019s commitments \u201cfully address\u201d the competition concerns\u00a0identified by the Commission by ensuring that the films of the merged entity will not be distributed jointly with those of Universal or Disney.<\/p>\n Following the positive feedback received in the context of the market test, the Commission concluded that the transaction, as modified by the commitments,\u00a0would no longer raise competition concerns.<\/p>\n The decision is conditional upon full compliance with the commitments. Under the supervision of the Commission, an independent trustee will monitor their implementation.<\/p>\n The Commission said it has the duty to assess mergers and acquisitions involving companies with revenue above certain thresholds, and to prevent concentrations that would significantly impede effective competition in the EU or any substantial part of it.<\/p>\n Meanwhile, the merger still requires securing approval from the United Kingdom\u2019s Competition and Markets Authority, in addition to clearing a lawsuit filed by 12 states, led by California.<\/p>\n Subscribe HERE to the FREE Media Play News Daily Newsletter<\/a><\/p>\n Related Posts<\/p>\n Paramount Asks European Union to Approve WBD Acquisition<\/a><\/p>\n Paramount Skydance has asked the European Union to formally approve its $111 billion equity acquisition of Warner Bros. Discovery ahead of the EU’s July 7 provisional deadline, according to a June 2 filing. The European trade alliance, which represents 27\u2026<\/p>\n Discovery Says European Commission Approves WarnerMedia Acquisition<\/a><\/p>\n The European Commission has reportedly given regulatory approval to Discovery’s $43 billion minority stake acquisition of AT&T’s WarnerMedia unit, which includes Warner Bros., Turner and HBO. U.S. government antitrust approval is expected sometime in 2022. AT&T agreed to give operational\u2026<\/p>\n