EU Weighs Paramount's Fix for $110 Bn Warner Bros Discovery Buyout

Paramount Skydance has put forward remedies aimed at resolving European Union antitrust concerns tied to its $110 billion purchase of Warner Bros Discovery, Reuters reported citing regulatory filing. The development follows an earlier report by the news agency, which suggested that the company was on track to win approval from the European Commission for the transaction.

The company said it was "confident that this remedy directly and comprehensively addresses any concerns expressed in the European Commission's preliminary assessment and support the path for timely clearance." The European Commission, which enforces competition rules across the EU, did not reveal specifics of the remedy, consistent with its usual practice.

The previous report indicated that Paramount would likely offer to exit its film distribution joint venture with Universal Pictures, a step meant to ease concerns raised by European cinema operators. To allow additional time to evaluate the proposal, the Commission has pushed back its decision deadline to July 22 from July 7.

Regulatory Hurdles Beyond Europe

In the United States, the Department of Justice (DOJ) has already approved the deal, though Paramount may still encounter opposition as California, New York and several other states prepare legal action to stop it, according to Reuters. Separately, Britain indicated on June 30 that it could step into the deal, pointing to possible effects on news coverage, children's programming and streaming services.

Last month, the DOJ's Antitrust Division approved the acquisition, determining it was unlikely to damage competition or hurt consumers. The clearance followed an eight-month investigation into how the merger could affect streaming platforms, traditional broadcast television and the wider entertainment industry.

"The extensive investigatory record reviewed by the Division suggests that the impact of the transaction will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers," the DOJ had said.

Investigators reviewed over two million documents gathered from roughly 80 industry sources during the process. The DOJ concluded that merging Paramount+ with HBO Max would produce a stronger streaming competitor, giving consumers a more viable alternative to dominant platforms. It also found no evidence the deal would weaken competition in traditional television, where networks continue to vie for viewers across sports, news and entertainment content.

Despite clearing DOJ scrutiny, the merger still needs sign-off from the Federal Communications Commission (FCC), which is currently examining a petition concerning foreign investment tied to the deal. Some US lawmakers have reportedly raised concerns over the participation of foreign backers, including Middle Eastern sovereign wealth funds, in financing the acquisition.

If finalised, the merger would rank among the largest in global media history.

The path of the deal to this point was not easy either.

It involved a prolonged bidding contest for Warner Bros Discovery, which included Netflix's sudden exit in February after Paramount Skydance raised its offer. That withdrawal left Paramount Skydance positioned to acquire Warner Bros Discovery in a transaction now valued at $110 billion, including debt.