European Union regulators are preparing to clear Paramount Skydance Corp.'s $111 billion takeover of Warner Bros. Discovery Inc., leaving state-level antitrust challenges in the U.S. as the deal's final major hurdle.
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EU set to approve Paramount's $111 billion Warner Bros. acquisition
The European Commission is poised to approve Paramount Skydance Corp.'s $111 billion acquisition of Warner Bros. Discovery Inc., people familiar with the matter said, removing one of the last regulatory obstacles to the media mega-merger.
"We are examining to what extent there is a reduction of the capability of creators and producers to come up with ideas," Teresa Ribera, the EU's antitrust chief, told Bloomberg Television on Wednesday, signaling the bloc's focus on filmmaker access to distribution channels. Ribera said regulators want to know whether "alternatives that producers and filmmakers can find" to get their content into homes and movie theaters would remain after the deal closes.
The transaction, valued at $111 billion including debt, would combine two of Hollywood's largest studios under a single parent company, bringing together Warner Bros.' film and television library with Paramount's CBS, Nickelodeon and Simon & Schuster assets. The EU's clearance is expected to come with conditions aimed at preserving competition in content licensing and distribution across European markets, according to the people.
The approval would leave a coalition of U.S. state attorneys general, led by California's Rob Bonta and joined by New York's Letitia James, as the most significant remaining threat to the transaction. The states are preparing a lawsuit that could seek to block the deal on antitrust grounds, potentially delaying or derailing the September closing target.
Regulatory Path Narrows
The EU's expected green light follows the U.S. Justice Department's clearance of the deal earlier this month after an eight-month probe. The DOJ concluded the transaction was not likely to hurt competition or American consumers, though career lawyers on the file had reportedly leaned toward recommending a lawsuit before being overruled. China approved the deal with no conditions, while the U.K.'s Competition and Markets Authority is still reviewing the transaction.
The state-level challenge represents a growing trend of subnational antitrust enforcement. Bonta previously secured a federal injunction to halt the Nexstar-Tegna station merger after the DOJ and Federal Communications Commission had waved the deal through. A separate coalition of states beat Ticketmaster at trial after the DOJ settled its case.
What's at Stake for Hollywood
The combined entity would control a vast portfolio of film and television assets, including the Warner Bros. movie studio, HBO, CNN, CBS News, Paramount Pictures, Nickelodeon and the Paramount+ and Max streaming platforms. The merger would create a company with significant leverage in negotiations with theater chains, cable distributors and streaming rivals such as Netflix Inc. and Disney.
For European filmmakers and producers, the concern centers on whether a combined Paramount-Warner Bros. would reduce the number of buyers for independent content, potentially squeezing the diversity of programming available to European audiences. The EU's conditions are expected to address these concerns by requiring the merged company to maintain fair access to its distribution platforms for third-party content.
Paramount and Warner Bros. are targeting a September close, pending remaining regulatory approvals and the outcome of any state litigation. The companies have not commented on the EU review process.
This article is for informational purposes only and does not constitute investment advice.
[1] Paramount’s $110 Billion Warner Deal Faces EU Moviemaker Test[2] EU kicks off probe of Paramount's $24 billion in Middle Eastern funding for Warner Bros. deal - MSN[3] What State AGs Could Dig Up on Paramount-WB - The Ankler[4] In the pipeline: The Briefing for 22 June 2026 - Global Competition Review
