Paramount-Warner Bros. Merger Set to Clear European Union Regulatory Hurdle (Report)
Regulatory officials in Brussels are expected to greenlight Paramount’s $111 billion takeover of Warner Bros. Discovery, according to a Financial Times report, following its approval earlier this month by the U.S. Justice Department’s Antitrust Division.
Citing two sources familiar with the discussions, the FT reported that the European Commission was still hammering out final details of its approval of the mega-merger, which will entail that Paramount CEO David Ellison “accepts certain remedies” that are “designed to address competition concerns.”
One condition could be “a requirement for Paramount to exit its joint venture with Universal Pictures, which distributes films in several international markets,” the report added, cautioning that “a final decision had yet to be taken.”
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Warner Bros. stock was up about 1% as the New York stock exchange opened following the FT report.
The megadeal, inked in February after a protracted battle with Netflix, would bring bring together Paramount assets including CBS, CBS News, Paramount Pictures and Paramount+ with WBD’s HBO and HBO Max, Warner Bros. Pictures, CNN, TNT, TBS, HGTV and more.
The EU Commission’s review is among the last major regulatory obstacles that Ellison must face to create a global behemoth. The deal is also undergoing regulatory review in the U.K.
Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi’s L’imad Holding Company and the Qatar Investment Authority (QIA) are jointly putting up a total of $24 billion investment into the Hollywood mega merger. But that does not seem to be an issue with the EU.
The Commission has until July 7 to either approve the deal or open an in-depth probe.
A spokesperson for Paramount said the company does not comment “on any of ongoing regulatory proceedings.” There was no comment from the EU Commission.
