The European Commission has approved Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery, imposing conditions aimed at preserving competition in European film distribution.
Paramount must divest its stake in United International Pictures within 13 months of the deal's completion and is barred from entering joint film distribution agreements with Universal Pictures in the European Economic Area for a decade. The U.S. Justice Department cleared the transaction in June following its announcement in February.
The merger faces legal headwinds in the United States, where a coalition of states led by California challenged the deal. A federal court issued a temporary 14-day hold, with a hearing on a preliminary injunction scheduled for August 3. Paramount faces steep financial penalties if the deal stalls: $7 million per day if it fails to close by September 30, and a $7 billion termination fee if regulators ultimately block it.