The European Commission has approved the proposed $110 billion merger between Paramount Skydance and Warner Bros Discovery after Paramount agreed to end its European film distribution partnership with Universal Pictures. Regulators said the move addresses concerns that the combined company could gain excessive control over cinema distribution across Europe.
Despite securing approval in Europe, the merger remains on hold in the United States. A coalition of 12 US states has filed a lawsuit seeking to block the deal, arguing it could harm movie theatres, cable distributors, and consumers. A federal judge has temporarily paused the takeover while the legal challenge is reviewed.
If the merger is not completed by September 30, Paramount could face daily financial penalties under the agreement. The deal has also drawn opposition from the Writers Guild of America, which says it could reduce opportunities and wages for writers. Meanwhile, UK regulators are continuing to assess the merger’s potential impact on local media and competition.
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