Paramount’s acquisition of Warner Bros. Discovery is moving closer to approval by the European Commission, the EU’s antitrust authority. According to reports, the commission is set to approve the deal without launching an in-depth investigation, though this decision is pending until early July.
While the merger is likely to receive a green light, regulators may require Paramount to accept certain concessions to ease competition worries. These remedies could involve exiting an international distribution agreement with Universal Pictures or divesting some children’s TV network properties owned by Paramount to avoid regulatory obstacles.
The European Commission’s review runs independently of the parallel inquiry by the UK’s Competition and Markets Authority, which has initiated a merger inquiry into the same deal. Additionally, the commission is evaluating the role of financial backing from Middle Eastern investors under the Foreign Subsidies Regulations framework.
Key investors in the merger include Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, and Abu Dhabi’s L’imad Holding Co., alongside U.S.-based firms RedBird and LionTree. Paramount disclosed these details in an April filing with the U.S. Securities and Exchange Commission.
A European Commission spokesperson declined to comment on the matter, and Paramount has yet to respond to requests for remarks. The regulatory process in Europe has until early July to finalize its stance on the merger, marking a critical step in completing one of the largest media consolidations in recent years.