The European Commission has established a provisional deadline of early July to decide on the $110 billion merger between Paramount and Warner Bros. Discovery. The commission confirmed it has been formally notified and is progressing with its initial Phase 1 investigation, which lasts up to 25 working days.
During this initial phase, the commission gathers information through questionnaires and consultations with market participants to assess possible competitive impacts. Most mergers are approved at this stage, often without conditions. However, if concerns arise, the companies can propose remedies, extending the review period by an additional 10 working days. Should doubts persist, the investigation advances to a more thorough Phase 2, involving extensive data requests, site visits, and could take up to 90 working days, with potential extensions.
This merger, already approved by shareholders, targets a closing by the end of the third quarter, but Paramount hopes to complete it as soon as July. The European Commission’s review is one among several regulatory examinations worldwide. The United Kingdom’s competition authorities are also assessing the transaction, with public commentary having recently closed.
In the United States, Paramount has sought approval from the Federal Communications Commission for foreign investment components of the deal, where foreign investors would hold nearly half of the combined entity’s shares. Discussions continue with the Department of Justice, which completed its initial review period earlier this year but retains the option to intervene later. Meanwhile, state attorneys general, led by California’s Rob Bonta, are evaluating potential legal challenges, citing concerns about the merger’s market impact.