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EU conditionally clears Paramount bid for Warner Bros. / Photo: Robyn Beck - AFP/File
EU conditionally clears Paramount bid for Warner Bros.
The European Union on Wednesday gave the conditional green light for Paramount Skydance's $110 billion takeover of Warner Bros. Discovery.
After there were concerns about the deal's impact on film distribution in Europe, Brussels said Paramount must terminate its stake in United International Pictures -- a joint venture with Universal -- in the European Economic Area (EEA), which includes 27 EU states.
European regulators said in a statement that for a period of 10 years, Paramount should also not directly or indirectly "enter into any agreement or understanding with Universal to jointly co-distribute films in the EEA".
The EU said it did not have fears about the deal's impact on film production because enough studios remain as competitors in Europe, pointing to major US players like Disney, smaller US ones like Amazon MGM, and European studios.
"These commitments fully address the competition concerns identified by the (European) Commission by ensuring that the films of the merged entity will not be distributed jointly with those of Universal or Disney," the EU said.
"Under the supervision of the commission, an independent trustee will monitor their implementation," it added.
Paramount's bid still faces hurdles across the Atlantic after a federal judge in California ordered the companies to temporarily pause their merger this week.
- Eyes on US courts -
The takeover saga has been a drama worthy of a Hollywood film itself.
Netflix abandoned its effort to buy Warner Bros. Discovery in February after Paramount Skydance won a tense bidding war.
The combined company would control a vast array of assets, including CNN, Warner Bros. Pictures and the HBO Max streaming service.
Politics has been part of the drama from the beginning as US President Donald Trump has made it clear he is interested in what the merger will mean for broadcaster CNN, which often draws his ire.
The US judge's order on Monday came after 12 states led by California sued to block the deal after the justice department last month approved the merger.
Washington's green light was not a surprise for many since Paramount CEO David Ellison is the son of Oracle co-founder Larry Ellison, a close ally of Trump.
There will be a US hearing on August 3 regarding a preliminary injunction, which would prevent the transaction being closed before a final decision.
W.Bonnet--PS
