Paramount seeks EU approval for $110 billion Warner Bros Discovery takeover

BRUSSELS: It’s a blockbuster before the blockbuster. Hollywood’s latest mega-merger has officially landed in Brussels, with Paramount Skydance Corp seeking European Union approval for its proposed $110 billion acquisition of Warner Bros. Discovery.

A filing published by the European Commission on Tuesday confirmed that the media giant has formally requested antitrust clearance for the deal, one of the largest consolidation moves the entertainment industry has seen in recent years.

If approved, the takeover would bring together two of Hollywood’s most recognisable studios and content libraries under a single corporate umbrella, combining decades of film, television and streaming assets. The proposed merger has been closely watched by industry executives, investors and regulators alike due to its potential impact on competition across global media markets.

The European Commission, which oversees competition policy across the European Union’s 27 member states, has set July 7 as its preliminary deadline to decide whether to approve the transaction outright, approve it subject to remedies, or launch a more detailed investigation into potential competition concerns.

According to earlier reports, Paramount has indicated a willingness to sell smaller television assets, including certain children’s channels, if required to secure regulatory approval. Such divestments could help address concerns that the combined company may wield excessive influence in specific segments of the media and entertainment sector.

The EU review represents one of the final major regulatory hurdles for the transaction. Bloomberg reported that European approval is among the last key clearances needed before the merger can move towards completion. Under EU competition rules, regulators retain the power to block deals if proposed remedies fail to adequately address market concerns.

Meanwhile, signs from the United States suggest the transaction may face a smoother path at home. Last month, news outlet Semafor reported that regulators at the U.S. Department of Justice appeared inclined to approve the deal following discussions with company representatives.

Not everyone is convinced the merger is good news. Critics, including some Hollywood actors and industry figures, have voiced concerns that further consolidation could lead to job cuts across film and television production, while reducing opportunities for creative talent.

For now, all eyes are on Brussels. As regulators weigh the future of a deal that could reshape the entertainment landscape, Paramount and Warner Bros. Discovery are waiting to see whether their Hollywood script receives a European green light or a request for a rewrite.